DALLAS, April 06, 2021 (GLOBE NEWSWIRE) -- Last week, Senators Grassley and Leahy introduced the EB-5 Reform and Integrity Act of 2021 (EB-5 Reform Act) to provide for a five-year extension of the EB-5 program and establish much needed integrity reforms. CMB Regional Centers, as the leading EB-5 regional center and long-term member of the EB-5 trade organization IIUSA, has consistently advocated for ethical reforms, investor protections, transparency, and accountability within the EB-5 industry. We fully support this bill as it is an important step toward stabilizing and strengthening the EB-5 program, which is a valuable tool for the U.S. economy.
There has been significant research that demonstrates how the EB-5 program has attracted billions of dollars in foreign direct investment, created tens of thousands of new Americans jobs in needy communities, and benefitted the U.S. economy at no cost to the American Tax Payer. Ninety-five percent of EB-5 program participants invest through a regional center, thereby providing the greatest measure of the benefits from America’s EB-5 program.
The integrity requirements of the bill that are imposed on regional centers and promoters in the EB-5 industry will provide much needed protections to all current and future EB-5 investors. Additionally, the proposed legislation also carries language intended to eliminate threats to national security through the EB-5 program by prohibiting foreign ownership or administration of an EB-5 regional center, new commercial enterprise or job creating enterprise. Perhaps most important to investors and regional center operators alike, the bill introduces measures for shortening and standardizing petition processing times.
The EB-5 Reform and Integrity Act includes the following reforms and integrity requirements:
- Background Checks for Regional Center and affiliated Job Creating Enterprise (JCE) principals
- Elimination of foreign ownership or administration of regional centers, any New Commercial Enterprise (NCE), and JCEs
- Require the USCIS to audit regional centers at least once every 5 years
- Regional Centers must file a business plan and associated documents for an NCE in an application with the USCIS prior to investors filing I-526 petitions associated to the NCE
- An NCE must engage a third party fund administrator or have annual independent third party financial audits of the NCE, and provides those audits to the USCIS and individual investors
- Third-party promoters and migration agents must register with the USCIS and establishes requirements for transparency in payment of all fees to such third parties.
- Establishes an EB-5 Integrity Fund - 100% funded by regional centers – allowing USCIS to audit, monitor, and ensure regional center compliance with the law
- Source of funds vetting by USCIS strengthened to ensure investment funds lawfully sourced
- Requirement for investor capital to be maintained in segregated accounts to prevent misuse
- Protections for investors whose regional center is terminated or debarred
- Protections for child age-out scenarios
- Provides for a requirement for USCIS to research and identify fee structure that will allow for certain EB-5 applications to be processed within an identified target number of days
- Allows for additional structured fees to be used to benefit USCIS improvements in electronic and IT processing and storage
As the leading regional center in the EB-5 program, CMB Regional Centers is unwavering in the support of the reauthorization of the EB-5 program and supports and encourages the passage of the EB-5 Reform and Integrity Act of 2021. Further, we invite all to get involved and show your support for Senators Grassley and Leahy. Lend your support by writing to your Congressman (a template is available through IIUSA), and by joining the Coalition to Save and Create Jobs.
The elements found in the Integrity Act present an opportunity to extend the EB-5 Regional Center program, protect investors, bring about needed ethics reform and best practices for regional centers, defend America’s interests, and provide the job creation benefits to the American economy today and for the future.
Additional Important information
- EB-5 Visa Reform Needed in 2021
- President Biden’s Role in Legacy EB-5 Language
- Where are all the EB-5 Real Estate Juggernauts?
If you would like to learn more about the EB-5 Investor Visa, or CMB’s current EB-5 offerings, please contact us to schedule a free initial consultation with a CMB Investor Relations Manager.
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CMB engages Prevail Capital, LLC, a broker-dealer registered with the SEC and a member of FINRA and SIPC, to be the administrative placement agent for all CMB EB-5 partnerships.
If you would like to contact CMB Regional Centers please call +1-309-797-1550 or email us at info@cmbeb5visa.com