Tuesday May 11th- Alejandro Mayorkas, Director of U.S. Citizenship and Immigration Services, testified before the US Senate Judiciary Committee in a hearing examining USCIS practices in multiple categories including EB5.
During the hearing Director Mayorkas, vowed to work with Senator Leahy, longtime supporter of EB5, to improve the efficiency of EB5. One promising change discussed was the possibility of pre-approving Regional Center business plans. Mayorkas and USCIS are dedicated to an efficient process, stating, “We (USCIS) understand the benefit that a Regional Center determination can have on future EB5 applications.”
Below are excerpts from the May 11th hearing.
Senator Patrick Leahy (D-VT)
I have long supported the EB-5 immigrant investor visa, and in particular the EB-5 Regional Center program. The B-5 program brings significant amounts of capital to economically challenged regions of our country. Most importantly, this program creates jobs for Americans. Entrepreneurs in Vermont have used this program to revitalize businesses, with economic benefits and job creation across entire regions. I intend to introduce legislation soon to modernize this program. Among my priorities, I intend to make the program permanent. My bill will also ensure that as it grows, the program remains free from fraud or abuse.
Senator Patrick Leahy (D-VT)
Director, I’m drafting legislation to modernize the EB5 Regional Center program. I’m a strong believer in EB5 because I have seen how well it’s worked… in my state.
Now one of the issues I hear from stakeholders involves the economic aspects of the program. Some stakeholders have expressed frustration that when an investor petition is being adjudicated by USCIS the adjudicators look at both the petition and the business plan attached to it. That can cause a lot of delays I think we could promote efficiency and predictability if Regional Centers were able to seek agency pre-approval for a business plan in which investors could then become involved. It would allow the agency to divide adjudication tasks between economic experts who would review the business plan and immigration experts would adjudicate the investor petitions.
Do you agree that if you separate the business plan approval process from the petition adjudication process, you could have more consistent and careful review of business plans?
Alejandro Mayorkas, Director of U.S. Citizenship and Immigration Services
Senator, thank you for your question with respect to the EB5 program, that program I myself have given a great deal of attention to. I recognize its economic benefits. We would welcome the opportunity to consider the possibility of pre-approving business plans and applications to established regional centers.
We understand the benefit that a regional center determination can have on future EB5 applications. I do want to say that we have taken a number of discrete steps to improve our EB5 adjudication process most notably we have concentrated expertise in one local where all eb5 applications are submitted for our review and consideration. We have also in response to public concern about the time it takes to review and adjudicate those applications. We have cut the application processing time by approximately 50%. It use to take us approximately 8 months to adjudicate an EB5 application and our cycle time is now approximately 4 months.
Senator Patrick Leahy (D-VT)
My concern is obviously you have to look at the immigration question and you don’t want to prod in it. Although what I’ve seen of these have been very legitimate business people trying to raise capital though the regional center program and I just don’t want the whole thing being looked at as being one huge issue instead of breaking it down into its component parts and probably look at it in a more efficient way. When we set up the program congress intended it to have flexibility to accommodate the realities of business including unforeseen delays that occur through no fault of the investor, especially these days...the stock market goes up and down… the capital ebbs and flows, probably more than we would like, but if you have an investor and a domestic business person acting in good faith. I hate to see the investor suffer the denial of a green card.
So would you commit to have your department/office and mine work together to see if we can find ways to make the whole process more efficient?
Alejandro Mayorkas, Director of U.S. Citizenship and Immigration Services
Most certainly will Mr. Chairman.
Click here to view the hearing in its entirety
