EB5: will the death bell ring soon?

Two leading senators have just introduced S.1501 that aimed at extending EB5 regional center law(which will expire9/30/2015) to 2020.  That's good.

The bad: Lots of restriction and limitations. For example,  the requirement to pre-file each offering together with SEC registration, limiting credit for job creation based on the percentage of the alien’s investment in the capital stack, and responsibility to control the activities of independent third parties overseas) apparently apply only to Regional Center offerings. Direct investors would share the increased investment amount ($800,000/$1,200,000) and more limited TEA definitions (a single high-unemployment census tract, or rural area, or closed military base). The bill also doesn’t include any promise to grandfather petitions or applications that were filed under requirements in place prior to the bill becoming law, so past as well as future investors could be affected.

If these changes become law, the EB5 regional center law as we know it now will no longer exist.  The proposed changes will make the operation expense of the regional centers very high and the requirements to invest in TEA and to create the requisite jobs very difficult, not to mention the increase of the minimum investment amount.

If these changes become reality, the EB5 industry will be damaged beyond recognition and as a result, fewer regional centers will be operating and fewer investors would want to seek immigration through the EB5 program, although direct investment EB5 may see a jump.