With “fix-or-nix” admonishments, lawmakers have extended the popular EB-5 financing program through September of 2016.
The program provides U.S. residency visas to foreign investors in real estate developments that provide at least 10 permanent jobs in targeted employment areas (TEAs). In the 25 years of the program’s existence billions in real estate financing have been to rural areas or areas with significantly high unemployment rates.
The program has fallen under scrutiny for rumors of misappropriation of funds and widespread fraud in the infrastructure of its regional centers. Developers and lawmakers both are calling for greater consistency of oversight. EB-5 has been named a top priority by the SEC.
The extension puts regulatory changes on hold until the final decision to do away with it or permanently renew. Advocates seeking to increase the base investment (from $500,000 to $800,00) and developers with 5-10 year plans will have to wait until September to make any major overhauls or actions.
Find full video and downloadable testimonies from the Senate Judiciary Committee’s hearing on Feb 2.
