These are dicey times for the EB-5 program — including the move to end it by one congressman who wants to shut it down — but attorney and EB-5 specialist Troy Nehring, who just joined Baker Tilly Capital in its Seattle office, is optimistic about its future.
"I don’t expect major changes to the regional center portion of the EB-5 program prior to its sunset date on April 28," Nehring said. "I anticipate the program will be extended 'as-is' for a short period of time."
The EB-5 program's benefits are apparent in many developments across the United States, he said.
"That includes several projects in the greater Seattle area utilizing the EB-5 program with great effectiveness."
Home Plate Center in SoDo, for one, successfully utilized $155M in EB-5 capital. Seattle is one of the markets that also has seen a handful of dodgy EB-5 deals.
Nehring said Congress will likely pass legislation extending and reforming the regional center part of the EB-5 program.
"Those reforms will likely include an increase in the minimum investment amount as well as the institution of EB-5 compliance guidelines and procedures. Many professionals in the EB-5 industry would welcome such reforms.
"In the meantime, the Department of Homeland Security has proposed its own reforms via the rulemaking process. It's raised filing fees associated with the EB-5 program and implemented certain compliance requirements. These are positive steps for the EB-5 program."
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