There are prospects that the EB-5 visa, the fastest and safest way to get to the green card and that grants to the applicant, single dependents up to 21 years and spouse, the same rights as an American citizen, will change on September 30th. The deadline for filing the liabilities of 500,000 dollars and the assets of 1 million, in the direct, will be close to completion.
It is worth remembering that all the information in this article is remarks, but this analysis that I want to share, thinking about who is seeking more information on the subject, is based on more than ten years operating in this market. I have my studies, research and graphics that took me some time to interpret, but that lead me to this line of thought.
A long time ago, there was a need to readjust the legislation governing the EB-5, mainly on the money invested, which has as its purpose the generation of employment and development of certain regions. In a very simple way, we can say that this is the purpose of this visa, besides generating jobs and moving capital.
If we take the 10000 EB-5 quotas made available annually by the U.S. government, and multiply it by 500,000, not counting the amount of 1 million that is EB-5 direct, it will result in a very expressive number. Some regional centres were created from this amount.
There are many large, more solid and structured poles in the United States that are already grounded, that is, do not depend on this capital. The minors use this feature to have a lower interest rate, so in the end have a cheaper money.
These lesser known centers rely on the EB-5 investor to put 500,000 in the box, paying in this way an annual low remuneration, rather than raising that amount in a bank that will charge a little more. This is done as a tool to reduce costs. Not that they need this money, because there is already a fund in a financial institution or with private investors or even equity. Some adopt this posture, some do not. They put in the budget the sale of that capital as an investment for the EB-5, and thus execute the work.
There are numerous regional centres that depend on this repass. I have been following the development of each and I can say that there are still many quotas open, because they are very small and unknown poles, that is, has no tradition in the market and then people are afraid to earmark any amount.
There is the beginning of the work and the prior hiring of the employees but still lack capital in that fund. And if we now enter into force that new norm, where there is the readjustment, these poles will break. And I understand that if that happens, there's going to be a very large generation of unemployment.
Let's imagine the following scenario. About 50 poles, each work has more or less 100 employees. Changing what we have as a basis today in terms of the EB-5 rules, this will result in 5000 people without jobs on 1 October, which is going to bring countless impacts to the North American economy.
I reiterate that there is nothing official in these terms, just my thesis, as if I were in Congress and would be fighting not to happen. I would fight for an extension for a maximum of 90 days, which is the deadline for these people to be able to sell these poles or leverage the money in another way, since it is possible to pass these projects on to large centres and investors or Developers who have capital to complete the work. If that does not happen, these managers will subsequently respond to the damage that many will have and we know that this was not the intention.
I am absolutely certain that something will be done, or to protect these poles, or to extend for more or less 90 days. I may be wrong, but I want to be very transparent because today, that's the way I see it. These Poles received a time to do their homework that they failed to complete. They tried, but they needed more time and it happened for a number of reasons, including the economy itself.
So today, if I'm not wrong, in the next few days we will have news regarding this issue of going up to 925,000 dollars a share of the EB-5 passive. If I were in Congress, I'd be fighting for these people to have time to actually complete what was programmed in March.
I hope there's that time, so the small poles can adjust. Who has investment in the big ones is quiet, but the minors are really sleepless because there was little time so they could adjust with this financial issue and it may be that Congress sees this, because otherwise the economy will have to Bitter unemployment of over 5000 workers. They are posts that will cease to exist overnight.
* Daniel Toledo is a lawyer specialized in international law, business consultant and founding partner of Loyalty Miami. For more information, visit: Http://www.loyalty.miami or contact us by email @ loyalty. Miami. Toledo also has a YouTube channel with more than 55000 followers Https://www.youtube.com/loyaltymiamiusa with tips for those who want to live, work or undertake in the United States. The company is now headquartered in Portugal and Spain.