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The program is placed in a very strange and non-helpful governmental location for the stimulation of worldwide financial investment in the United States. We are offering away too much for too small of a financial investment.


The regional centers, with their half-million schemes, basically damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to be regarding creating organization entities, not passive investments. It must be about developing genuine jobs, not specify estimations concerning the indirect production of tasks, which is now part of the regulation.


Maybe that is just one of the reasons that it has actually failed every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of middlemen, both public and personal. The program has even more than its share of scandals, which I will enter later if anyone is interested.


This is an agency that likes to say yes to applicants, however as the table in my testimony reveals, USCIS police officers have a lot a lot more trouble with EB-5 applications than others. I believe that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals who might not get them differently and to people whose organized investment is really much less, according to the Federal Reserve, than the average mean web worth of all American families in 2007. Let me expand on among my monitorings.


My price quote based upon the capitalists' permit applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not give the sort of data that we could make use of on this.


For every $100 of increased foreign investment that year, the EB program added one cent. Under a a lot more unsteady analytical base, the preliminary 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. Let us approve that.

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Thanks for paying attention to me. I eagerly anticipate your comments and questions. [The prepared declaration of David North appears as an entry for the document.] Chairman Leahy. Thank you. 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 functioned as Chief Advise of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program in personal practice. He was chosen, as I recognize, vice head of state of the Organization to Invest in United States, the national industry association of local centers.


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


At many, 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 expanding and getting toward that. Specifically as USCIS, the company that oversees the program, has actually been making the regulations clearer and the procedures extra sensible and clear for the people who are arranging financial investments and for the investors that are spending, more people have agreed and able to put effort and money right into the process to discover excellent projects and create them, and after that a lot more investors have agreed to invest their cash and take the risk and use the cash to develop the work that is the point of the program.

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These jobs do not wait around forever, and USCIS comprehends that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, in fact, they are ready to deny applications that are not qualifying. And they do so, as was discussed


The regional facility part of the program is not. It belongs to an appropriations bill that was passed in 1992, and considering 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 currently and not nearer to the date of expiry in September.


The process takes an excellent while to function up a task and after that to obtain the investors authorized. And they do not want their money moving through up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the advancement of tasks.

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I wish to clear up that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 law that becomes part of the code. It simply is a reality that the majority of the local facilities that are pooling investments have established those instead of high joblessness or in country areas where fifty percent- million-dollar financial investments are allowed, and that makes feeling.