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The program is put in an extremely strange and non-helpful governmental area for the stimulation of global financial investment in the United States. We are offering away also much for too tiny of an investment.


The local centers, with their half-million schemes, basically damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to be concerning developing service entities, not passive investments. It should be about creating genuine tasks, not clarify computations concerning the indirect production of jobs, which is currently part of the legislation.


Maybe that is among the reasons why it has failed year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also full of intermediaries, both public and private. The program has greater than its share of detractions, which I will get right into later if anybody is interested.


This is a company that enjoys to say yes to applicants, yet as the table in my testimony reveals, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that nobody has actually really spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals who could not get them otherwise and to people whose scheduled investment is actually less, according to the Federal Get, than the typical mean net worth of all American households in 2007. Allow me broaden on one of my monitorings.


My price quote based on the capitalists' permit applications submitted 2 years after the initial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not supply the type of data that we might use on this.


For every $100 of raised international financial investment that year, the EB program added one dime. Under a far more shaky analytical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for listening to me. I anticipate your remarks and inquiries. [The ready statement of David North looks like an entry for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice group.




Divine functioned as Principal Advice of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in private method. He was elected, as I understand, vice president of the Association to Buy USA, the national industry organization of local facilities.


STATEMENT 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, check here if all 10,000 ports were utilized, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, yet it is growing and obtaining toward that. Particularly as USCIS, the firm that looks after the program, has actually been making the rules more clear and the processes more sensible and clear for the people who are organizing investments and for the capitalists that are spending, more individuals have actually agreed and able to place effort and cash into the process to discover great jobs and create them, and after that much more investors have agreed to invest their cash and take the risk and make use of the cash to develop the tasks that is the factor of the program.

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These projects do not wait about permanently, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, in fact, they are prepared to reject applications that are not certifying. And they do so, as was discussed


The regional facility component of the program is not. It belongs to an appropriations expense that was passed in 1992, and since then that program has been prolonged five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to work up a task and afterwards to obtain the investors accepted. And they do not desire their money flowing with up until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of projects.

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I would love to clear up that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It just is a reality that most of the local centers that are merging financial investments have set those in places of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes sense.