Included in the recent Continuing Resolution, is a clean reauthorization of the EB-5 Regional Center Program through September 30 of this year. The inclusive Bill was passed into law by the House and the Senate and signed by President Trump, before the expiration deadline.
Negotiations to secure long-term reauthorization and reform to the EB-5 Program will resume with our Industry and EB-5 stakeholders engaged in meaningful discussions with the legislators to reach consensus and compromise with a new Bill for the healthy future of the Program.
This extension of the status quo does not eliminate the potential for changes to the program prior to next September 30. Some of the potentially adverse measures, such as higher minimum investment requirements and more difficult TEA qualifications, may come back in new legislation later this year so it is more important than ever , that you be prepared to file as as soon as you are ready and certainly before the September 30 deadline. There is a possibility that some of the current conditions may be grandfathered for a limited time for projects that have begun to file prior to implementation of any changes. As always, call us for the latest intelligence.
IF YOU'RE IN DOUBT, CALL US NOW FOR FURTHER DETAILS.
USCIS will apply legal precedents to take away about half of your calculated construction jobs before you even begin.Here are five ways to get them all back.
1. Don't take on any EB-5 construction projects without a USCIS-designated Regional Center and a qualified Economist on your team.Since you'll likely sub out almost all of your work on a construction project, you'll not have enough jobs to support your investors if you only count your direct actual hires. While that might work for job intensive businesses such as restaurants, it won't work for your development project. As an affiliate of a USCIS approved Regional Center, your project is allowed to utilize approved econometric methodologies to calculate all the jobs your activities generate in the region rather than just counting your own jobs, so you end up with far more eligible jobs to support more EB-5 investors.
2. Major construction projects need to have a construction schedule that exceeds 24 months, otherwise about half of your jobs will be regarded as "part time" and will not count towards your project's job creation. Plan your project around construction activities that will take 24 months or more. Pre-planning, permitting and zoning activities don't count. If your project is clearly much shorter, don't stretch it. See 3. below instead.
3. USCIS regards construction jobs largely as part time, hence ineligible for most EB-5 job creation, unless your project takes more than 24 months. Many projects just don't take that long, but we still want the jobs to support our investors. Careful planning and detailed capital expenditure budgets can help to separate non construction costs from the construction budget so we're left with the smallest possible actual construction budget and will lose the least number of jobs. Instead, much of your capital expenditure can be reallocated into alternate capital categories, which also create jobs, but which are not reduced, no matter how quickly you want to complete your project. UniSource also has an in-house Florida Building Contractor so we'll help you reallocate your costs towards the greatest job creation. You won't be put in the penalty box for having a quick turnaround project.
4. Don't forget that your project's ultimate revenues from sales, rentals, fees. leasing, commissions etc. can also create calculated jobs;often these can double the number of jobs from capital expenditures alone. Prepare detailed profit and loss projections so the Economist can apply the most favorable conditions for job creation. And, if your project is short, you'll start to earn those revenues and calculated jobs much sooner.
5. Use a qualified Economist with a track record of successful and approved EB-5 Economic Impact Analyses. The interpretation of job creation by USCIS is always changing and evolving. Only those familiar with the approved methodologies and with a track record of approved projects can help you create the greatest number of jobs to support your intended investors and ensure your project remains readily approvable.