Latest EB-5 News
New EB-5 Bill; Entrepreneur Visa Proposal
New EB-5 Bill
Tomorrow, a new proposed EB-5 bill will be released. It still appears that Congress, with a continuing resolution, will extend the EB-5 Regional Center statute to December 2016. This new bill is probably a bargaining position for legislation that may pass before December 9th. I am told by a lobbyist in Washington D.C. that it will not pass now, but will be a basis for possible changes to the EB-5 program. This bill may cause some to be concerned. I will outline the main points in a future newsletter.
I am advising investors to make their investment and provide documents on their lawful source of funds so that their I-526s can be filed in September.
Entrepreneur Visa Proposal
USCIS has published a proposed rule that would allow entrepreneurs to come temporarily to the U.S. to start up or scale their businesses. This is only a proposed rule – comments from the public will be accepted for 45 days, and then USCIS will review and consider comments before finalizing the rule. At this time, there is no set date for when the entrepreneurial parole program will take effect.
Under the proposed rule, the Department of Homeland Security may, on a case-by-case basis, parole in entrepreneurs who can show that their start-ups have “substantial and demonstrated potential for rapid business growth and job creation.” To qualify, the entrepreneur must meet many criteria including the following requirements:
- Have at least 15% ownership interest in the startup and an active and central role to its operations (cannot be mere investors);
- The start-up was formed in the United States within the past three years;
- The startup has substantial and demonstrated potential for rapid business growth and job creation, as shown by;
- Receiving significant investment of capital (at least $345,000) from qualified U.S. investors with established records of successful investments; or
- Receiving significant awards or grants (at least $100,000) from certain federal, state or local government entities; or
- Partially satisfying one or both of the above criteria in addition to other reliable and compelling evidence of the startup entity’s “substantial potential for rapid growth and job creation”;
- Maintain a salary of $97,000 or more.
The initial parole would be for up to two years, with a three-year extension available only by showing substantial increases in capital investment to $500,000, or revenue of $500,000, or the creation of 10 full-time jobs for U.S. workers.
The above are just the highlights – there are many more detailed criteria. The criteria are so restrictive that most entrepreneurs will not qualify for this visa option. Thus, this provision will not compete with the EB-5 program.