Congressmen: Federal Agency Unresponsive to County's Requests

Inland Empire congressional representatives upset about the apparent inaction of a federal agency responsible for processing applications that pave the way for immigrant investors to set up businesses in the U.S. are seeking changes at the agency, whose chief spokesman said today he couldn't understand why.

Reps. Ken Calvert, R-Corona, Duncan Hunter, R-Temecula, Raul Ruiz, D- Palm Springs, and Mark Takano, D-Riverside, jointly penned a letter to U.S. Citizenship and Immigration Services Director Alejandro Mayorkas, asking him to address issues that they allege are stymieing efforts to establish EB-5 regional centers in Riverside County.

"These issues include a lack of customer service and communication, in addition to lengthy wait times for the approval of new ... centers," the congressmen said in the letter, dated May 27.

They quoted county government officials who complained that "calls and emails to the USCIS ombudsman are not returned, and emails to employees regarding status updates on applications are ignored."

"These delays are severely impacting international investor confidence (and) translate into a lack of job creation in our county and a loss of investment capital here," according to the letter.

USCIS press secretary Chris Bentley told City News Service that he was unable to specifically address the congressional delegation's concerns without more information, though he confirmed that it can take up to a year for an application to establish an EB-5 regional center to be processed.

"We have to adjudicate each case. There's a lot of detailed information that has to be reviewed," Bentley said. "The congressmen's letter doesn't make reference to specific times, so I can't say whether this complaint has validity. I don't know if the applications they're citing are under the year time-frame, past it or at it."

EB-5 regional centers are private entities that receive federal charters to operate. Riverside County's EB-5 program was inaugurated in 2009. There are more than 240 EB-5 centers throughout the nation.

Since 1990, when Congress authorized the program, the centers have facilitated the issuance of 13,288 work visas, or "green cards," for affluent immigrants willing to commit their assets to starting up or taking over U.S.- based enterprises.

Between 1990 and 2012, $6.8 billion was invested, contributing to the creation of an estimated 49,000 jobs, according to USCIS data.

"The EB-5 regional center program and visas are very important funding sources for local businesses in the county," Riverside County Foreign Trade Commissioner Tom Freeman told CNS. "We have seen investment of capital from Europeans, Canadians and Asians."

In Murrieta, the USA Continental Regional Center is a designated EB-5 center.

Freeman said 20 EB-5 center applications are in the federal pipeline, but it's taking too long to get them approved.

"Today we are looking at 365 days," he said, arguing that federal legislation passed following the 2008 real estate market meltdown has created needless delays.

 "USCIS needs to return to the 1990 approval process ... Foreign direct investment creates jobs."

Calvert said he understood the need for the Department of Homeland Security, under which the USCIS operates, to "perform due diligence."

"But they should do so in a more efficient and transparent manner," the congressman said. "Our region cannot afford to lose more jobs because of bureaucratic red tape."

Under the EB-5 program, visa recipients must commit $1 million to start a new business, expand an existing one or buy one that's struggling and needs help. The invested funds must be directly or indirectly tied to the creation of at least 10 jobs.

In areas where the unemployment rate exceeds the national average by 150 percent, foreign entrepreneurs need only invest $500,000 to qualify for a conditional visa, according to federal officials.

—City News Service