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The program is placed in a really odd and non-helpful governmental area for the excitement of international financial investment in the United States. Second, its scale is all wrong. We are distributing as well much for as well little of an investment. Better, increasing financial backing half a million dollars a tranche is, to say the least, ineffective.


The local centers, with their half-million schemes, essentially undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should have to do with producing business entities, not passive investments. It ought to be concerning producing genuine jobs, not clarify computations regarding the indirect development of work, which is currently component of the regulations.


Perhaps that is just one of the reasons that it has fallen short year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of middlemen, both public and private. The program has greater than its share of detractions, which I will certainly get right into later on if anyone is interested.


This is an agency that likes to say yes to applicants, however as the table in my testament reveals, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that no one has actually actually spoken about much. EB5 Regional Center Program. There are high rates of interior denials in this program and forever reason

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Seventh, in this program visas go to people that can not obtain them otherwise and to individuals whose planned investment is in fact less, according to the Federal Book, than the typical mean net well worth of all American families in 2007. Allow me broaden on one of my monitorings.


My estimate based on the capitalists' environment-friendly card applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the sort of data that we can utilize on this.


For every $100 of increased international investment that year, the EB program contributed one cent. Under a much a lot more shaky analytical base, the initial applications of would-be immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thanks for listening to me. I expect your comments and inquiries. [The ready statement of David North appears as a submission for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique team.




Divine functioned as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Supervisor. He has actually worked extensively with the EB-5 program in personal practice. He was elected, as I recognize, vice president of the Association to Invest in United States, the nationwide industry organization of regional.


Divine, we are happy to have you right here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the firm that supervises the program, has actually been making the guidelines more clear and the processes much more logical and clear for the individuals who are organizing financial investments and for the investors that are investing, more people have wanted and able to place initiative and money into the procedure to locate good jobs and create them, and after that much more investors have been ready to spend their money and take the danger and make use of the money to create the tasks that is the point of the program.

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These projects do not wait about permanently, and USCIS recognizes that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, in truth, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The regional facility part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The process takes a great while to develop a job and afterwards to obtain the investors authorized. And they do not desire their money streaming through up until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already dissuading the advancement of tasks.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million read more or a million is a function of the routine EB-5 legislation that is component of the code. It simply is a truth that the majority of the regional facilities that are pooling investments have set those instead of high unemployment or in backwoods where half- million-dollar financial investments are allowed, and that makes sense.