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The program is put in a very odd and non-helpful bureaucratic location for the excitement of international financial investment in the United States. We are giving away too much for as well little of a financial investment.


The local centers, with their half-million systems, essentially damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to be regarding developing organization entities, not easy financial investments. It needs to be regarding creating actual work, not clarify estimations about the indirect development of tasks, which is now component of the legislation.


Maybe that is one of the factors why it has actually stopped working time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will get involved in later if anybody is interested.


This is a company that loves to claim yes to candidates, but as the table in my testimony reveals, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that nobody has actually really spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and completely factor

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Seventh, in this program visas go to people who can not obtain them any kind of various other means and to people whose scheduled investment is in fact less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Allow me increase on among my observations.


My price quote based on the financiers' permit applications filed 2 years after the first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not give the type of data that we might utilize on this.


For every $100 of boosted foreign investment that year, the EB program added one cent. Under a much more unsteady statistical base, the first applications of potential immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I eagerly anticipate your comments and concerns. [The prepared declaration of David North looks like an entry 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 worked as Principal Counsel of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Supervisor. He has worked extensively with the EB-5 program in private technique. He was elected, as I comprehend, news vice president of the Organization to Invest in U.S.A., the national sector organization of regional centers.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, 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, Legislator Grassley, and others.


At most, if all 10,000 slots were utilized, it would be 1 percent of the immigration every year to the USA. It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the firm that manages the program, has been making the regulations clearer and the procedures much more reasonable and clear for individuals that are arranging investments and for the investors that are investing, more individuals have actually wanted and able to place initiative and cash right into the procedure to locate good jobs and create them, and after that extra investors have agreed to invest their cash and take the risk and make use of the cash to create the work that is the factor of the see post program.

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These projects do not linger forever, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, in truth, they are prepared to reject applications that are not qualifying. And they do so, as was stated


The regional facility component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and because then that program has been extended 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 process takes a great while to work up a task and afterwards to get the financiers approved. And they do not desire their money moving through up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently preventing the advancement of jobs.

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I wish 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 normal EB-5 regulation that becomes part of the code. It just is a truth that a lot of the regional centers that are pooling financial investments have set those instead of high unemployment or in rural areas where half- million-dollar financial investments are permitted, and Look At This that makes good sense.