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The program is placed in an extremely strange and non-helpful bureaucratic area for the stimulation of global financial investment in the United States. Second, its scale is all wrong. We are providing away excessive for too little of an investment. Even more, increasing endeavor resources fifty percent a million bucks a tranche is, to say the least, ineffective.


The regional centers, with their half-million schemes, basically undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, must be regarding producing business entities, not passive investments. It needs to be concerning creating genuine jobs, not elaborate estimations concerning the indirect creation of work, which is currently part of the regulations.


Possibly that is just one of the reasons it has fallen short year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will enter into later on if anybody is interested.


This is a firm that likes to say yes to candidates, however as the table in my testament reveals, USCIS officers have a lot a lot more problem with EB-5 applications than others. I believe that is something that nobody has actually truly spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever factor

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Seventh, in this program visas most likely to individuals who can not get them any kind of other way and to people whose organized financial investment is in fact much less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Let me increase on one of my monitorings.


My estimate based upon the financiers' permit applications filed 2 years after the initial financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not give the sort of data that we might utilize on this.


For every $100 of boosted foreign financial investment that year, the EB program added one dime. Under a much extra unsteady analytical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I look onward to your comments and inquiries. [The prepared declaration of David North appears as a submission for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine acted as Chief Advise of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Acting Replacement Director. He has functioned extensively with the EB-5 program in private method. He was elected, as I understand, vice head of state of the Organization to Buy United States, the national sector organization of local facilities.


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


At a lot of, if all 10,000 ports were used, it would be 1 percent of the immigration yearly to the USA. It is not near that here yet, yet it is growing and obtaining towards that. Especially as USCIS, the firm that looks after the program, has been making the rules more clear and the processes more logical and clear for the individuals who are arranging investments and for the capitalists that are investing, even more individuals have been willing and able to place effort and money into the process to find good projects and develop them, and then much more investors have actually agreed to spend their money and take the danger and make use of the cash to develop the tasks that is the point of the program.

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These tasks do not wait around permanently, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, in truth, they are prepared to deny applications that are not qualifying. And they do so, as was stated


The local center part of the program is not. It is part of an appropriations costs that was enacted in 1992, and given that then that program has been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes a great while to function up a job and afterwards to get the financiers accepted. And they do not desire their cash moving via until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of projects.

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I would certainly like to clarify that the Regional Facility Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 law that becomes part of the code. It just is a truth that the majority of the local centers that are merging financial investments have set those instead of high unemployment or in rural locations where fifty percent- million-dollar investments are enabled, which makes sense.