WASHINGTON, DC—Two House Democrats have introduced a bill that, like the Senate version introduced earlier this year, provides reforms to the EB-5 Immigrant Investor Program. But the bill also goes on to expand the program, adding a new category of visa called EB-6.

This is new territory for the debate over EB-5, although not entirely unexpected. With this very popular program up for renewal in September, Congresspeople are likely to introduce bills that they hope will attach to the main measure.

Indeed, the chance of a Democrat-sponsored measure passing the Republican-led House of Representatives is extremely unlikely to almost nil. But the bill, EB-JOBS Act of 2015 -- along with unrelated events such as the failure of Congress to renew the U.S. Export-Import Bank before it recessed for August -- does illustrate the uphill climb the EB-5 renewal is facing.

As of right now, any measure that stands a chance of passing the House would be the American Entrepreneurship and Investment Act of 2015, which was introduced in February by Rep. Mark Amodei (R-NV) and Rep. Jared Polis (D-CO). It has been referred to the the Subcommittee on Immigration and Border Security.

This newest measure was introduced by Rep. Zoe Lofgren (D-CA) and Luis Gutierrez (D-IL).

It outlines reforms to the EB-5 program such as redefining the Targeted Employment Area concept to better incentivize investment in rural areas, areas with high unemployment or large declines in population and areas with closed military bases.

It then moves to create another, "conditional" visa called EB-6. This would provide green cards to venture capital-backed start-ups -- that is, an entrepreneur that has invested at least $500,000 towards a new commercial enterprise. Also, "self-sponsored start-ups" would fall in this category as well as long as they can demonstrate job creation in the US.

The bill is viewed as a non-starter. As for renewal of the program, some in the commercial real estate industry have doubts it will happen by September. "I don't think anything will pass by then," Brian Ostar, director of Global Operations for the Washington DC-based EB Capital tells GlobeSt.com. "I think they will extend the program for four or five months to buy some more time to hash out the reforms."

Unfortunately Congress does not have the best track record in meeting program deadlines. The most recent example is the expiration of the US Export-Import Bank's authorization, which Congress did not renew before it left for August recess.

This failure prompted Boeing chairman Jim McNerny to announce at an event hosted by the Economic Club of Washington -- the same one, incidentally where Boeing made its surprise $20 million gift to the Kennedy Center -- that the manufacturer is considering moving key pieces of its operations outside of the United States as a result. [see video's 10 minute mark].

"We are now forced to think about this differently," McNerney told the audience.

Instant Insights /

New House Bill Expands EB-5 To Create EB-6 Visa

Related Stories

Recommended For You