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The program is placed in a really strange and non-helpful bureaucratic area for the excitement of international investment in the United States. We are giving away too much for too small of a financial investment.


The local centers, with their half-million systems, basically undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should be regarding developing company entities, not easy investments. It needs to be concerning producing genuine jobs, not clarify calculations regarding the indirect development of work, which is now component of the regulations.


Probably that is among the reasons why it has actually fallen short time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will certainly obtain right into later if any person is interested.


This is an agency that enjoys to claim yes to applicants, however as the table in my testament reveals, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that no one has actually spoken around a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and forever reason

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Seventh, in this program visas most likely to individuals who might not get them any other way and to people whose scheduled financial investment is in fact much less, according to the Federal Book, than the average mean net well worth of all American households in 2007. Allow me expand on among my monitorings.


My quote based on the capitalists' environment-friendly card applications submitted 2 years after the very first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the type of data that we can use on this.


For every $100 of enhanced foreign financial investment that year, the EB program added one penny. Under a a lot more wobbly statistical 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. Allow us accept that.

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Thanks for paying attention to me. I look onward to your right here comments and questions. [The prepared declaration of David North looks like an entry for the record.] 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 Advice of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Organization to Invest in U.S.A., the nationwide industry organization of local.


Divine, we are pleased to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, yet it is growing and getting toward that. Particularly as USCIS, the firm that oversees the program, has been making the policies more clear and the procedures more logical and clear for the individuals that are arranging investments and for the investors who are investing, more people have actually agreed and able to put initiative and cash into the procedure to official website discover great jobs and establish them, and afterwards extra capitalists have actually been eager to spend their cash and take the threat and use the money to create the jobs that is the factor of the program.

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These projects do not linger permanently, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they are all set use this link to reject applications that are not qualifying. And they do so, as was pointed out


The local facility part of the program is not. It is part of an appropriations expense that was established in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a project and after that to obtain the investors authorized. And they do not desire their cash moving with until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the development of projects.

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I wish to make clear that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 regulation that becomes part of the code. It just is a reality that most of the regional facilities that are pooling investments have actually set those instead of high unemployment or in country locations where half- million-dollar financial investments are permitted, and that makes good sense.