The world has turned upside down in wake of Coronavirus, and the times ahead it is necessary to re-evaluate the assumptions underlying our actions. There is a genuine opportunity for dramatic Congressional action on EB-5 this April, and in age of Coronavirus, we need to re-evaluate our previous assumptions on what is or isn’t possible in Congress regarding EB-5.
Politico, an American political media company, recently reported that there was a provision being considered for inclusion in the recently passed coronavirus relief package (known as the Phase 3 Bill with $2.0 trillion in relief) that would raise the number of EB-5 visas from 10,000 to 75,000 and lower the investment amount from $900,000 to $450,000.
Other sources from Capitol Hill confirmed independently that Senator Graham and Jared Kushner were indeed pushing to include these provisions into the bill just 36 hours before Senator Graham denied it on Fox News (mainly because of people’s anger directed at China for being the source of coronavirus).
However, Immigration Daily, an American immigration law publisher, has also published that EB-5 relief is now very much a possibility and is already on the table for negotiation in Congress. This is because capital now has 10 to 100 times the value as capital did before the Coronavirus. Companies, industries and countries are on a hunt for whatever additional capital they can find. Though 75,000 EB-5 investments at $450K are just a small amount of the capital that America needs, EB-5 capital is nevertheless a clear positive on America’s balance sheet – especially when it is presented in a simple proposal such as 7.5x numbers and a 50% cut in investment amount. EB-5 industry trade groups appear to be stuck in the pre-coronavirus past and are failing to see the new opportunity.
For dramatic EB-5 expansion to be included in Phase 4 of Congressional Coronavirus relief expected in late April, it needs to be kept simple such as in the Kushner-Graham proposal. Attempting to add too many provisions will make it too complex for achieving consensus, and EB-5 would likely then be dropped from Phase 4. The primary political opposition to this dramatic EB-5 expansion comes from those who argue that EB-5 expansion rewards China, which doesn’t merit such a reward after unleashing Coronavirus into the world. The simplest way to diffuse that political opposition, and to achieve consensus, is to exempt China from EB-5 relief.
We encourage all EB-5 stakeholders to realize that there is real opportunity for significant Congressional action in April and to get behind simple, common-sense measures along the lines of the Kushner-Graham proposal, with China exempted from relief.
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