EB5 Investors Magazine Volume 4 Issue 1 | Page 90

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