Evolution of the EB-5 Business Plan
and Its Role Today
by Ellen Choe & Robert Lee
Introduction
In the last quarter of 2015, the entire EB-5 industry had been
expecting a program overhaul with an impact potentially greater
than those brought on by the last wave of changes in 2012
and officially implemented in 2013. Sometimes, even after
much debate and fanfare, nothing changes. Even so, industry
experts know that although it may take longer than initially
expected, significant changes are o n the horizon. Meanwhile, the
recalibration and temporary stabilization of the EB-5 program
that occurred after USCIS’ publication of its May 30, 2013
Memorandum1 has been overshadowed by the current legislative
uncertainty and has turned the EB-5 process into a painful
waiting game. The good news is that the changes coming will
not completely blind-side the industry. Any adjustments to
existing EB-5 strategies should happen quickly as soon as the
new policies are unveiled. For now, many are either waiting to
see how things unfold or are pressing forward with hopes that
88
the changes are in their favor. For those anticipating strategic
changes and multiple scenarios to get ahead of the curve, there is
value in reviewing the impact of the May Memo on the business
plan and how projects need to be evaluated.
The evolution of the EB-5 business plan over the last few
years provides valuable insight into where the program is
today and how to respond to policy changes. Ignoring or
misunderstanding this evolution has led many down a path
towards a Request for Evidence (RFE) by USCIS that could
have been avoided altogether. In addition, the role of third-party
data and the most recent trends highlighted in this article can
help regional centers and affiliates prepare for their EB-5 project
under current circumstances. Hopefully, by understanding and
analyzing successful strategic responses of the past, the industry
will be equipped to quickly respond to the changes that are soon
to come.
EB5 INVESTORS MAGAZINE