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The program is put in a really strange and non-helpful governmental area for the stimulation of worldwide investment in the United States. We are offering away as well much for as well tiny of an investment.


The regional centers, with their half-million plans, basically damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be concerning creating company entities, not easy financial investments. It must have to do with creating actual work, not specify calculations about the indirect production of jobs, which is now component of the legislation.


Perhaps that is just one of the factors why it has fallen short year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well loaded with intermediaries, both public and private. The program has greater than its share of scandals, which I will certainly get into later if anybody is interested.


This is a company that enjoys to claim yes to applicants, yet as the table in my testimony shows, USCIS police officers have a lot extra trouble with EB-5 applications than others. I believe that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever factor

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Seventh, in this program visas most likely to individuals that could not get them differently and to individuals whose planned financial investment is actually less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Let me expand on one of my monitorings.


My quote based upon the investors' permit applications submitted 2 years after the first investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not give the kind of data that we might utilize on this.


For every $100 of enhanced foreign financial investment that year, the EB program added one dime. Under a far more unsteady analytical base, the initial applications of potential immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I expect your remarks and inquiries. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method group.




Divine acted as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and then Performing Deputy Director. He has actually worked thoroughly with the EB-5 program secretive method. He was chosen, as I recognize, vice president of the Association to Invest in United States, the nationwide market organization of regional.


STATEMENT 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, Legislator Grassley, and others.


At the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, however it is growing and obtaining toward that. Particularly as USCIS, the agency that looks after the program, has been making the policies clearer and the processes much more logical and clear for individuals who are arranging financial investments and for the financiers that are investing, more individuals have agreed and able to place initiative and money into the process to find great tasks and create them, and afterwards extra investors have actually been prepared to spend their cash and take the risk and make use of the cash to create the work that is the factor of the program.

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These jobs do not wait around permanently, and USCIS understands that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, actually, they are all set to deny applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It is part of an appropriations bill that was established in 1992, and ever since that program has actually 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 to the day of expiry in September.


The process takes an excellent while to develop a project and then to get the investors authorized. And they do not desire their money flowing with up until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the growth of tasks.

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I wish to clarify that the Regional Facility Program is not the very same as the half-million-dollar point. The idea more info of half a million or a million is a feature of the routine EB-5 law that is part of the code. It simply is a fact that many of the regional centers that are pooling financial investments have established those instead of high joblessness or in backwoods where half- million-dollar investments are permitted, which makes good sense.