Due to current economic conditions, the new EB-5 program will be favorable for developers as a source of capital. That is according to a recent Q&A with EB-5 Attorney Ronnie Fieldstone of Saul Ewing. Read on to learn more about the recent changes to the EB-5 program, what type of real estate developments will be attracting EB-5 capital and how developers can capitalize on the EB-5 program.
GlobeSt.com: With the adoption of new legislation on March 15, 2022, how has the EB-5 program been improved?
Ronnie Fieldstone: The most important improvement is that the EB-5 Reform and Integrity Act of 2022 has reauthorized the EB-5 Investor Visa program until 2027. In the past, the reauthorization used to be done on a yearly basis, which created unnecessary uncertainty over the future of the program. The new regulations create investor confidence and provide robust oversight to weed out bad actors and fraud. The new program puts in place more protections for investors and increases accountability for everyone involved in the process. The Act promotes investment in rural areas and high-unemployment areas. In the past, urban areas used to disproportionately attract EB-5 investment. In addition to Congress creating certainty for the program, a recent settlement agreement between US Customs and Immigration Services (USCIS) and Behring Regional Center LLS and other operators also clarified a lot of issues regarding the reauthorization of regional centers. Another improvement is that Chinese investors can now invest in rural projects and don't have to wait for retrogression. Due to current economic conditions, the new program will be favorable for developers as a source of capital.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
