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


The local facilities, with their half-million systems, basically undercut the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, ought to have to do with developing business entities, not passive financial investments. It ought to be about creating actual jobs, not elaborate calculations about the indirect production of tasks, which is currently component of the regulations.


Maybe that is one of the reasons it has fallen short year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with middlemen, both public and personal. The program has greater than its share of scandals, which I will get into later if anyone is interested.


This is a company that loves to say yes to candidates, but as the table in my testimony shows, USCIS police officers have far more difficulty with EB-5 applications than others. I think that is something that nobody has truly discussed a lot. EB5 Regional Center Program. There are high prices of interior 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 type of various other way and to people whose scheduled investment is in fact less, according to the Federal Book, than the average mean internet well worth of all American family members in 2007. Allow me broaden on one of my observations.


My estimate based upon the investors' copyright applications filed 2 years after the very first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not provide the sort of data that we could use on this.


So for every single $100 of boosted international investment that year, the EB program added one penny. Under a much a lot more wobbly analytical base, the first applications of potential immigrant capitalists, USCIS is informing journalists that the degree of 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 anticipate your comments and concerns. [The ready statement of David North appears 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 is the head of the firm's immigration method team.




Divine worked as Chief Counsel of the USA Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Learn More Acting Director, and after that Acting Replacement Director. He has actually about his worked extensively with the EB-5 program in exclusive method. He was chosen, as I understand, vice head of state of the Organization to Invest in USA, the national market association of regional.


Divine, we are delighted to have you right here. Please go on, sir. 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. Thank you for having me.


At the majority of, 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, yet it is expanding and getting toward that. Especially as USCIS, the company that manages the program, has been making the policies more clear and the procedures much more rational and clear for individuals that are organizing investments and for the financiers who are investing, even more people have actually wanted and able to place effort and cash right into the process to find good tasks and create them, and after that a lot more financiers have actually wanted to invest their money and take the threat and make use of the cash to produce the jobs that is the factor of the program.

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These jobs do not wait around permanently, and USCIS recognizes that and are trying to other speed the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, in fact, they are prepared to refute applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It belongs to an appropriations expense that was passed in 1992, and because then that program has actually been expanded 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes a good while to develop a project and afterwards to obtain the capitalists authorized. And they do not want their money streaming through up until they have been accepted. And the specter of the expiry of this Regional Center Program in September is currently preventing the development of projects.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 law that belongs to the code. It simply is a reality that the majority of the regional centers that are pooling investments have established those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.