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H.R. 601 Extends EB-5 Program and Provides $15.25B of Disaster Relief Funds

President Trump has signed into law H.R. 601, a continuing resolution that funds the federal government through December 8, 2017, and thereby extends the EB-5 Regional Center Program beyond September 30, 2017—the end of the federal fiscal year.

The resolution—Continuing Appropriations Act, 2018 and Supplemental Appropriations for Disaster Relief Requirements Act, 2017—provides $15.25 billion in emergency funding for the Departments of Homeland Security, Housing and Urban Development, and Small Business Administration to support disaster response and assistance. With the President's September 8 signing, the Act also temporarily suspends the country's debt limit, among other provisions.

The EB-5 Regional Center Program extension comes with no further legislative changes at this time, though passage of an EB-5 reform bill before December 8 is possible. Indeed, H.R. 601 arguably hints at the possibility of legislative reform before its next sunset date in language that states, in part, that "appropriations and funds made available and authority granted pursuant to this Act shall be available until whichever of the following first occurs: 

  1. The enactment into law of an appropriation for any project or activity provided for in this Act;

  2. The enactment into law of the applicable appropriations Act for fiscal year 2018 without any provision for such project or activity; or

  3. December 8, 2017."

USCIS Issues Form I-924A Filing Tips. Also on September 8, 2017, the U.S. Citizenship and Immigration Services (USCIS) issued updated filing tips on its "Annual Reporting Information/Filing Tips" page in preparation for regional center annual compliance by issuing Form I-924A, Annual Certification of Regional Center.

One filing tip of note is the inclusion of supplemental materials to the I-924A. Supplemental documents would be of optimal advantage in any year in which the regional center is overdue to show indicia of economic activity promotion in the center's geographic area, and thus at risk of receiving a Notice of Intent to Terminate (NOIT). USCIS issues a NOIT when a regional center appears not to have promoted economic growth, demonstrated typically by a lack of I-526 filings (or systemic I-526 denials). Supporting documents could include records on pending projects with fundraising underway or imminent. Examples include copies of licenses, permits, record of property purchased in support of a project, or other evidence of ongoing regional center activity. The decision on whether such evidence is sufficient to demonstrate promotion of economic growth is made by USCIS on a case-by-case basis.

The deadline to file a Form I-924A is December 29, 2017, for the current fiscal year (October 1, 2016 to September 30, 2017).

USCIS Stakeholder Meeting. Please mark your calendars for USCIS's next EB-5 Program national meeting of stakeholders on Tuesday, November 7, 2017, from 1 p.m. to 2:30 p.m. ET, at the agency's New York City field office. Participants can attend the meeting in person or through teleconferencing, with the opportunity to send questions in advance to be answered during the meeting. Information on how to dial in will be made available as the date nears.

Copyright © by Ballard Spahr LLP

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About this Author

Debbie Klis, Ballard Spahr Law Firm, Washington DC, Finance and Immigration Law Attorney
Partner

Debbie A. Klis has a broad financial practice focused on an array of business, securities, and tax issues. She is known for her work with investment management companies, including the formation and operation of EB-5 immigration investment funds and regional centers, hedge funds, private equity funds, real estate funds, land syndications, and international master-feeder structures.

Ms. Klis represents real estate developers and public and private companies seeking capital under the EB-5 program to fund their projects. She assists principals and...

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Steve Park, Ballard Spahr Law Firm, Atlanta, Business Immigration and Finance Law Attorney
Partner

Steve B. Park has experience in corporate, securities, and finance law with an emphasis on public and private offerings of securities, commercial lending transactions, mergers and acquisitions, corporate governance, EB-5 transactions, and compliance with SEC regulations and reporting requirements.

Mr. Park is Co-Practice Leader of the firm's EB-5 Group and is well known for his work on EB-5 financing matters and has represented a wide range of regional centers, project developers, and other sponsors in EB-5 securities offerings and other aspects of the federal program. EB5 Investors Magazine recently named him one of the top eight EB-5 corporate and securities attorneys in the United States.

678-420-9590