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After months of build-up and questions, the US Congress passed an extension of the EB-5 program through Dec. 11. The EB-5 community has been in a hubbub for months, wondering if the program would expire, although Congress never really made it seem like they would pull the plug on the wildly popular program.
But now that the extension's official, EB-5 supporters are excited. Wright Johnson president Aaron Goforth tells Bisnow the EB-5 program is a great mechanism to finance projects, especially for mezzanine or gap funding, "while creating American jobs at zero cost to the taxpayer." Aaron says the program is a win-win "so long as the requisite 10 permanent jobs are created."
All signs point to reform at some point, however, especially with major concerns surrounding potential EB-5 fraud. But proper due diligence should correct that, Aaron says. "The continued oversight provided by government agencies such as the SEC, FINRA, USCIS and others will help to ensure the integrity of the program."
The EB-5 has been a major source of capital for developers, not to mention new construction jobs, a capital infusion developers hope to keep. Wright Johnson director Amy Ericson says they'll continue to educate EB-5 program participants on EB-5 financing to make sure projects get done, and to ensure the program is being used properly.
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