Orlando area developers will be scrambling over the next four months to raise capital from international investors before new Trump Administration regulations for the EB-5 visa program take effect Nov. 21, according to a report in GrowthSpotter.
The new guidelines published last week nearly double the investment threshold for EB-5 projects from $1 million to $1.8 million. Projects located within qualified Targeted Employment Areas would require foreign nationals to invest $900,000, up from $500,000.
“There’s going to be a big push to get as many investors filed as possible in the next 120 days,” Orlando immigration attorney Edward Beshara told GrowthSpotter. “So the developers have to get a whole team of EB-5 professionals and lay out a plan of action.”
Beshara estimates that about 40% of existing or future EB-5 investors could get priced out of the system.
Park Square Enterprises is currently raising capital through EB-5 for a new Woodspring Suites hotel in Sanford. CEO Suresh Gupta said the company is only two investors shy of reaching its $3 million goal.
“I’m sure now given that there’s a new deadline, we won’t have any trouble getting the last two,” Gupta said on Monday. “This will actually help us because we’ve got the project, and it’s already started. There’s going to be a mad dash for investors to apply.”
David Townsend, master developer of Ocoee’s City Centre West Orange, said he too expects an influx of new EB-5 investors looking to beat the November 21 deadline. The mixed-use project is already underway and features a hotel, luxury condominiums, retail, restaurant and office space.
© 2019 The Orlando Sentinel (Orlando, Fla.), Laura Kinsler. Distributed by Tribune Content Agency, LLC.