Indian investors disappointed over non-inclusion of EB-5 reauthorization in stopgap bill to fund government
On Dec 2, Congress passed a continuing resolution (H.R.6119) extending the current US government budget through Feb. 18, 2022 to avoid a government shutdown. Many industry stakeholders were hopeful that the EB-5 via Regional Center Program would be reauthorized through it.
Unfortunately, despite active engagement with multiple senators and their staffs, EB-5 reauthorization was not included as an amendment. In fact, this was a clean continuing resolution, meaning that only one amendment, the funding of Afghanistan refugee resettlement, was attached.
A lot of Indian investors who look at EB-5 as a promising route to invest and settle in the US, were definitely disappointed.
Read: When will the pause in the EB-5 regional program end? (November 17, 2021)
Suresh Rajan, executive chairman and founder of LCR Capital Partners says, “While this causes more delay for our clients and prospects, we remain optimistic about reauthorization.”
“Even with the extremely high workload of legislation going through the Congress, senior members from both parties are still engaged on EB-5,” he said. “There is a consensus draft bill for reauthorization already introduced in the Senate and more members have officially supported the Grassley-Leahy bill (S.831).”
On whether the delay would cause frustration to Indians looking towards the program, he says, “We share the frustration of our clients and will continue to work for long-term reauthorization and improved integrity measures.
“Next steps are identifying another piece of legislation that an EB-5 bill can be attached to as an amendment, or seeing it included in the Omnibus Appropriations Bill that needs to be passed now by February 18.”
The EB-5 Immigrant Investor Visa is a US federal program that allows qualified foreign investors and their immediate family members to obtain permanent residency in the US by making an investment in the US that creates jobs.
Read: Will the EB-5 visa program get current by yearend? (November 29, 2021)
While the base program was created in 1990 by an act of the US Congress, with the 1993 enactment of the Regional Center program, investors gained the option to apply for an EB-5 visa by investing in a pooled fund with other investors, which most commonly finances a job-creating development project that investors do not have to manage themselves.