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EB-5 Program Reauthorized

The EB-5 Program is Reauthorized

President Biden signed legislation today with the effect that the EB-5 program is reauthorized, in particular its Regional Center component, effective now through September 30, 2027.  The program is part of the EB-5 Reform and Integrity Act of 2022 (the “Act”), which itself is part of the Omnibus spending bill signed by the President.

 

The reauthorization of the Regional Center program follows an almost 9 month lapse, when prior efforts failed to extend the program beyond July 1, 2021.  The Regional Centers aspect of EB-5 have allowed foreign investors a special opportunity to invest in high-profile developments that they likely would not otherwise find accessible.  The EB-5 program had its controversies and numerous parties had worked to place safeguards to prevent fraud and encourage investment in areas that followed from the original intent of the program.

 

The EB-5 program allows foreign investors to invest a specified amount of capital into a U.S. enterprise that creates American jobs, in return for permanent residency.  With passage of the EB-5 Reform and Integrity Act of 2022, changes were made to the program to presumably improve its implementation.  The new legislation emphasizes compliance with EB-5’s intent along with enforcement procedures.   Program sponsors under EB-5 will face greater scrutiny in recordkeeping, investment types, audits, and investor communications.   The minimum EB-5 investment amount now increases to $800,000 from the current $500,000 for Targeted Employment Areas and Rural Areas,  and, changes to $1.05 million from the current $1.0 million for Non-Targeted Employment Areas.  These changed minimum investments apply to both regional center and direct EB-5 investments.

 

With the news that the EB-5 Program is reauthorized, a backload of foreign investors who were in the midst of processing last June, will hopefully soon see progress in the processing of their investment / visa applications.

 

The EB-5 Immigrant Investor Visa Program was created in 1990 by the Immigration Act of 1990.

Strategic Marketing Consultants - project feasibility consultants

Sierra Crossing Mixed-Use District

The Allen Group  |   Project feasibility evaluation including tenant mix, leasing, and anchor tenant strategies for this potential mixed-use district planned for Bakersfield, California.  Work including consideration of project naming convention and selection of project name. Also provided retailer presence grid and analysis for retailers in the region, and those that were not.

 

Work included collaboration with owner’s team and project architect on land planning issues for a mixed-use program of power center, lifestyle center, and general-purpose for-lease office buildings.

 

Feasibility Study for Hotel Project

Feasibility Study for Hotel Project

Feasibility study for hotel project at LAX in Los Angeles, including market analysis, a relative order-of-magnitude (“ROM”) capital budget, facilities recommendations, and financial projections.   Our financial projections included several scenarios to estimate varying potential operating results depending upon the build-out and facilities enhancement program at Los Angeles International Airport.

 

As hotel development consultants we provided a project feasibility report, including market analysis with financial projections, facility recommendations, and hotel franchise affiliation recommendations, for this (then) planned commercial hotel situated along Century Boulevard at the Los Angeles International (LAX) Airport.

 

The facility was eventually designed for 747 guest rooms within a 12-floor building envelope.  An interesting aspect of the hotel feasibility analysis was identifying the facilities and amenities to attract business travelers to stay in the airport area rather than the extensive overnight accommodations available throughout Los Angeles.

 

Our work was prepared for Watt High-Rise, Inc., then an operating division of the Watt Companies. Inc.  headquartered in Santa Monica, California.   Watt Companies has developed a diversified portfolio of real estate properties, including commercial real estate, hotels, and master-planned communities.

 

The property opened as a Stouffer Hotel and was later re-flagged as The Westin Los Angeles Airport.   Our work as development feasibility consultants in preparing the project feasibility study for this hotel project, was completed prior to the branding change from Stouffer branding to Westin.

Planned Community Consultants - project feasibility consultants

Conway Farms Golf MPC – Project Feasibility

Confidential Private Investor Group   |  As project feasibility consultants, SCP provided market and financial feasibility analysis in support of this 400-acre master-planned residential golf community in Lake Forest (Chicago), Illinois.

 

Residential market analysis, residential product array and concepting, builder residual analysis, and business plan feasibility analysis was conducted for this now completed luxury residential golf community, situated in prestigious Lake Forest, Illinois.   The Tom Fazio (golf course architect) award-wining course sits on 209 acres and is designed around the traditions of Scottish links golf.

 

Strategic Planning Consultants - project feasibility consultants

Microbrewery Feasibility and Business Plan

As strategic planning consultants for this proposed new business, StoneCreek Partners supported client exploration of best means “meet the market.”

 

A microbrewery can take on a variety of formats, primarily related to scale of production, objectives for wholesale business, and the importance of associated brewpub operations. With the wholesale business there are issues of distribution including the option of self-distribution. The microbrewery can have a taproom (tasting room) but this function can have a fuller realization as a brewpub. The overall facility can offer itself as an event facility, or itself produce special events that help to promote the facility. And of course, the facility can offer direct-to-consumer “carryout” product and branded merchandise.

 

Contact us for more information, we'll enjoy hearing from you.