14 Sep September 2014 EB-5 Stakeholder Teleconference
On September 10, 2014, USCIS held a teleconference for EB-5 stakeholders. Chief Nicholas Colucci led the meeting accompanied by three new members of his team. Mr. Colucci offered updates regarding transparency and predictability. Many questions were addressed while others were left unanswered.
Mr. Colucci began by explaining that there has been progress in performance, but there is still more work to be done. He stated that efforts have been made in terms of hiring and training 83 new members with another 12 anticipated to start in October. The goal is to have a staff of 110 adjudicators before the end of calendar year 2014.
Mr. Colucci discussed customer service and transparency. He detailed that USCIS created a customer service team in April to ensure timely responses to stakeholders. Since it was created there have been 3500 inquiries via the Service Request Management Tool (SRMT) and the Immigrant Investor mailbox. A request was made for those who have I-526 and I-829 petitions being processed to not send status inquiries through these means. Mr. Colucci also stated that there will be more helpful information available soon including EB-5 interactive filing tips, insights into Requests for Evidence (RFE), and FAQ’s. He also mentioned that USCIS would like to hear more about how they can be more effective. Additionally, there will be an annual report available by the end of 2014.
Mr. Colucci discussed partnerships that USCIS is in the process of developing. One of these partnerships is with the Department of Commerce. The focus will be on a study of the EB-5 program’s impact on the U.S. economy, which will be released in the summer of 2015. An Interagency Symposium with federal partners was also revealed. e-Council Inc.com eagerly anticipates this report as we have no doubt that the numbers will be astounding!
Practically speaking, a scenario wherein a holdback escrow account[1] structure would be permissible was outlined. In such a case, the petitioner’s investment to the NCE was split and held in two escrow accounts. Upon filing the form I-526, the funds of the primary escrow account were released into the NCE and loaned to the job creating entity. The funds of the secondary or “holdback escrow account” were structured to either be refunded to the petitioner upon denial or released to the NCE upon earlier of either the petitioner’s I-526 approval or denial of another petitioner’s I-526. When the petitioner’s funds from the holdback escrow account were contributed to the NCE, the petitioner received a capital credit in that amount such that upon approval, each approved petitioner contributed the required minimum amount for EB-5 classification. . This type of structure would be approved by USCIS depending on the facts and circumstances of the case.
There was also a discussion about the recent unavailability of visas for mainland China. The good news is that there will be minimal impact on applicants at this time, and indeed USCIS will continue to receive and process applications! The slight change has been in I-485 applications, which USCIS can still receive, but final adjudication will be held until October 1, 2014.
Most questions, especially those that involved retrogression[2], were left unanswered. One question that was answered was about using a portfolio method where each individual investment would not create 10 jobs but the pooled investment when combined would create the requisite jobs. The specific question was: If the construction period is more than two years – could a series of construction projects be combined? It was stated that if the same group of people are involved in the phases then this would be OK; however, if the projects are unrelated, then this would not be allowed.
In conclusion, it seemed that many attendees were hoping to hear more specifics regarding retrogression and perhaps left disappointed. Overall, however, it was helpful to learn about the new additions and partnerships with other federal agencies which will hopefully help to improve the program. It seems that the focus on more transparency, performance, and predictability is aimed at improving the EB-5 process.
To find out about professional, well-researched, articulate, expository narrative Visa Business Plans, whether for EB-5 or any other business-related Visa, as well as a variety of ancillary services, all of which are designed to specifically address USCIS’s concerns, contact e-Council Inc.com at info@ecouncilinc.com.
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[1] As defined by http://www.investorwords.com/2323/holdback.html – A contractual condition in which money is withheld until a specified event occurs
[2] As defined by USCIS http://www.uscis.gov/green-card/green-card-processes-and-procedures/visa-availability-priority-dates/visa-retrogression – Visa retrogression occurs when more people apply for a visa in a particular category or country than there are visas available for that month. Retrogression typically occurs toward the end of the fiscal year as visa issuance approaches the annual category, or per-country limitations. Sometimes a priority date that meets the cut-off date one month will not meet the cut-off date the next month. When the new fiscal year begins on October 1, a new supply of visas is made available and usually, but not always, returns the dates to where they were before retrogression.