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The program is placed in an extremely odd and non-helpful administrative place for the stimulation of global financial investment in the United States. We are giving away as well much for too little of a financial investment.


The regional centers, with their half-million plans, basically damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to be regarding producing business entities, not easy investments. It should have to do with creating actual tasks, not elaborate estimations regarding the indirect development of tasks, which is now part of the regulation.


Perhaps that is one of the reasons it has failed year after year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled with intermediaries, both public and private. The program has greater than its share of detractions, which I will certainly enter into later on if anybody is interested.


This is an agency that likes to claim yes to candidates, but as the table in my testament shows, USCIS policemans have far more difficulty with EB-5 applications than others. I assume that is something that no one has truly spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and permanently reason

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Seventh, in this program visas go to individuals who might not obtain them any kind of other method and to people whose scheduled investment is in fact less, according to the Federal Get, than the typical mean internet worth of all American families in 2007. Let me increase on among my monitorings.


My estimate based upon the investors' eco-friendly card applications submitted 2 years after the first investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not offer the sort of data that we might make use of on this.


So for every single $100 of increased foreign investment that year, the EB program added one penny. Under a far more unsteady statistical base, the preliminary applications of would-be immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for listening to me. I anticipate your comments and questions. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice team.




Divine acted as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and then Performing Deputy Director. He has actually functioned extensively with the EB-5 program secretive method. He More Info was elected, as I understand, vice president of the Association to Spend in United States, the national sector organization of local.


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


At a lot of, if all 10,000 slots were utilized, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is expanding and getting towards that. Specifically as USCIS, the firm that oversees the program, has been making the rules more clear and the procedures a lot more logical and clear for the people who are arranging investments and for the financiers who are investing, even more people have wanted and able to place effort and money into the process to find good tasks and develop them, and afterwards extra capitalists have actually been ready to invest their money and take the threat and use the money to develop the tasks that is the point of the program.

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These projects do not linger for life, and USCIS recognizes that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, as a matter of fact, they are prepared to refute applications that are not certifying. And they do so, as was pointed out


The local facility component of the program is not. It belongs to an appropriations costs that was passed in 1992, and given that then that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer index to the date of expiration in September.


The procedure takes a good while to develop a job and afterwards to get the capitalists accepted. And they do not want their cash additional reading streaming with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of projects.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It simply is a truth that many of the local facilities that are merging investments have set those in areas of high joblessness or in backwoods where half- million-dollar financial investments are enabled, and that makes good sense.