US Citizenship And Immigration Needs Business Advice On EB-5 Visas For Foreign Investors, Says New Study

The Associated Press reports that the Brookings Institution, a DC think tank, has suggested in a new report that U.S. Citizenship and Immigration Services (USCIS), which handles the nation’s visa programs, should get business advice from the Department of Commerce on the awarding of EB-5 visas for foreign immigrant investors. The report’s authors say that the program, which has been the object of recent criticism after it was used to fund a number of failed projects, should give an oversight role to the DOC -- a recommendation which the AP notes echoed a December report from the Department of Homeland Security which said the EB-5 program goes beyond the mission of the USCIS.

The EB-5 or Immigrant Investor program was established in 1990 and allocates 10,000 permanent residency visas (or green cards) per year to foreigners who invest $500,000 in US businesses which create or preserve 10 full-time jobs. The Brookings Institute writes the program has seen a recent spike in interest due to a rise in wealthy investors from developing countries along with a decline in domestic financing sources because of the Great Recession. But there’s still room for growth -- the AP notes that in 2012, 6,600 of these visas were issued, much higher than the 800 granted in 2007 but still a good distance away from the 10,000 yearly cap.

The program makes use of “regional centers” located in areas targeted for growth -- for instance, at the beginning of 2013, the Texas city of Austin created a panel to attract EB-5 investors in green energy, joining eight other regional centers in California, Arizona, Nevada and Michigan as a center for renewable energy projects. The Brookings Institution and DHS reports want the coordination of those regional centers, as well as the vetting of business plans and determining whether a project created the minimum number of jobs, to pass over into the hands of the Department of Commerce.