On May 24, 2012, Senator Patrick Leahy (D-Vermont) introduced legislation into the U.S. Senate that would make the EB-5 Regional Center Program permanent.  Senate Bill 3245 is co-sponsored by Senator Chuck Grassley (R-Iowa) and was referred to the Senate Judiciary Committee where it is pending committee action.  Senator Leahy previously secured short-term extensions of the EB-5 Regional Center Program, which is currently set to expire on September 30, 2012.

In his remarks, Senator Leahy stated, "I am grateful that Senator Grassley has worked with me to craft this legislation, and I am optimistic its introduction marks the beginning of a strong bipartisan effort to make these long-standing programs permanent.  When enacted, the measure we introduce today will also pave the way for my efforts to improve and build upon the EB-5 Regional Center Program to ensure stability for investors and entrepreneurs, and to ensure that U.S. Citizenship and Immigration Services has the tools it needs to keep this program a strong, secure, and vital part of our economy."

In addition to Senate Bill 3245 that would make the EB-5 Regional Center Program permanent, Senator Leahy reportedly secured a three-year extension of the EB-5 Regional Center Program during the Senate Appropriations Committee’s consideration of the Department of Homeland Security appropriations bill.

The EB-5 Regional Center Program, administered by the U.S. Citizenship and Immigration Services ("USCIS"), is a pilot program created by Section 610 of Public Law 102-395 (Oct. 6, 1992).  EB-5 requirements for an investor under the EB-5 Regional Center Program are essentially the same as in the standard EB-5 investor program, whereby the EB-5 investor (foreign national) is granted lawful permanent residence in the United States in exchange for an investment of $1 million (or $500,000 in special certified circumstances) in qualifying U.S. businesses that, in turn, create or preserve at least 10 jobs in the United States.  However, the EB-5 Regional Center Program provides for investments that are affiliated with an economic unit known as a “regional center,” as opposed to a traditional business.  Investments made through regional centers can take advantage of a more expansive concept of job creation, including both “indirect” and “direct” jobs.  Regional centers are geographical areas for which USCIS has determined that investments will create the necessary 10 jobs per EB-5 investor, whether directly or indirectly, in the regional center’s approved geographical area.  Since its inception, the EB-5 Regional Center Program has attracted more than $1 billion in foreign investment to the United States and created thousands of new domestic jobs.  There are now over 220 regional centers in the United States, with many new applications pending.

Read the full senate bill here.

© 2012 Perkins Coie LLP