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The program is placed in a very odd and non-helpful governmental place for the stimulation of global investment in the United States. We are offering away also much for as well tiny of an investment.


The regional facilities, with their half-million systems, essentially undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should be concerning producing business entities, not passive financial investments. It needs to have to do with developing actual work, not clarify calculations about the indirect creation of work, which is now component of the regulation.


Maybe that is among the reasons it has stopped working every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also loaded with intermediaries, both public and private. The program has greater than its share of scandals, which I will obtain into later if anybody is interested.


This is an agency that loves to state yes to applicants, yet as the table in my testament reveals, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high rates of interior denials in this program and forever factor

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Seventh, in this program visas go to individuals that can not obtain them otherwise and to people whose planned financial investment is actually less, according to the Federal Book, than the typical mean total assets of all American family members in 2007. Let me expand on among my observations.


My price quote based upon the investors' permit applications submitted 2 years after the first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not offer the sort of data that we might make use of on this.


So for every single $100 of enhanced international investment that year, the EB program added one penny. Under a much more wobbly statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for listening to me. I look ahead to your remarks and inquiries. [The prepared statement of David North shows up as an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He click here is the head of the firm's immigration technique team.




Divine served as Principal Counsel of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program secretive method. He was elected, as I comprehend, vice president of the Organization to Purchase U.S.A., the nationwide sector association of local centers.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is growing and getting toward that. Particularly as USCIS, the agency that looks after the program, has been making the regulations clearer and the procedures more logical and clear for individuals who are organizing investments and for the capitalists who are spending, more individuals have actually agreed and able to put effort and cash into the procedure to locate excellent projects and establish them, and afterwards extra investors have actually been willing to invest their money and take the threat and use the money to develop the tasks that is the point of the program.

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These jobs do not linger forever, and USCIS recognizes that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, as a matter of fact, they are all set to reject applications that are not qualifying. And they do so, as was discussed


The local center component of the program is not. It is component of an appropriations bill that was established in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to work up a job and then to obtain the financiers accepted. And they do not want their money flowing through up until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth of projects.

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I want to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 legislation that is component of the code. It just is a truth that the majority of the local centers that are merging financial investments have actually set those instead of high joblessness or in backwoods where half- million-dollar investments are permitted, which makes good sense.