February 3, 2016 – EB-5 Stakeholder Engagement Summary
Noted Speakers:
Nicholas Colucci – Chief of the Immigrant Investor Program (program changes and improvements)
Lory McKenzie—Chief of IPO Policy and Performance Division (policy)
Julia Harrison – Deputy Chief of the Immigrant Investor Program (source of funds, the adjudication of I-829)
The first EB-5 Stakeholder Engagement was not one of any excitement, especially following the eventful year of 2015. Although Stakeholders were given the opportunity to ask questions, no substantial information was given.
Nicholas Colucci began by informing the audience that he had testified before the Senate Judiciary Committee the day before. He went on to say that the EB-5 program is open to changes and reform to ensure legality and economic growth. The department has hired two new divisional chiefs: David Leckenby, the first Chief of Staff, and Edy Pearson. The USCIS has received approval to increase their staff to 171 for fiscal year 2016, continuing to build on its 113 staff members.
Of interest, Mr. Colucci discussed the approximate processing times of applications of each form, with the 21,790 currently pending I-526s taking around 15.5 months to process, the 902 I-924s taking around 7.9 months, and the 4,314 I-829s forms taking 15.7 months. Currently, there are approximately 800 regional centers, with USCIS reviewing regional center applications for FY 2015. Eighty-five (85) Notices of Intent to Terminate (NOITs) have been issued for failure to submit documents and promote economic growth, leading to the termination of nine (9) regional centers.
Chief Colucci did not fail to bring up some of the current SEC investigations against regional centers. He pointed out that the primary issues were mismanagement of capital funds, non disclosure to the investors and using EB-5 funds for non job creation purposes such for overseas recruitment trips and agents. Upcoming for the FY 2016, the USCIS will continue to increase steps to uphold the integrity of the program with: unannounced random site visits, I-829 stage interviews, and audit programs for the RCs. The customer support system will be updated to allow stakeholders to submit inquiries and ID numbers added to verify RCs.
Lory McKenzie and Julia Harrison iterated similar themes with respect to policy changes and current protocols for the IPO. Lory McKenzie indicated that the department was prepared to issue guidance for the Regional Center program if sunsets in September. She also indicated that visa availability questions should be addressed to the Department of State. Julia Harrison stressed the need for proper documentation and proof of the source of funds, including loans and gifts, as they may require more documentation as they see fit.Additionally, she said that an EB-5 investor conditional residency status is not automatically terminated if the NCE associated with a regional center has been terminated,.
Furthermore, regional centers must notify the agency within 30 days of any operational and administrative changes, including ownership and managerial changes. An email to the program mailbox is sufficient notification, however, notification must be sent as soon as possible, ideally with I-924 amendment. Ownership change does not affect I-526 and I-829 applications.
Stay tuned – the next Stakeholder meeting will be held on April 25, 2016 in Washington D.C., with an opportunity to appear in person.