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The program is positioned in a very odd and non-helpful governmental location for the excitement of global financial investment in the United States. We are providing away as well much for too small of an investment.


The local centers, with their half-million systems, essentially undercut the much 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 concerning producing company entities, not easy investments. It must be regarding producing genuine tasks, not specify estimations regarding the indirect production of work, which is now part of the regulations.


Perhaps that is just one of the factors why it has fallen short every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of middlemen, both public and personal. The program has more than its share of rumors, which I will obtain right into later if anybody is interested.


This is a firm that enjoys to state yes to candidates, however as the table in my statement shows, USCIS officers have a lot a lot more difficulty with EB-5 applications than others. I assume that is something that no one has really discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for excellent factor

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Seventh, in this program visas most likely to people who might not get them any kind of other method and to individuals whose organized investment is in fact less, according to the Federal Book, than the ordinary mean internet well worth of all American family members in 2007. Let me increase on one of my observations.


My price quote based on the investors' permit applications submitted 2 years after the first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not offer the kind of information that we can make use of on this.


So for each $100 of increased international investment that year, the EB program contributed one cent. Under a a lot more wobbly analytical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. I expect your remarks and questions. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our next 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 team.




Divine acted as Principal Advice of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has worked extensively with website the EB-5 program in personal practice. He was elected, as I understand, vice head of state of the Organization to Spend in United States, the national sector 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 PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were utilized, it would be 1 percent of the migration annually to the USA. It is not near that yet, however it is growing and obtaining towards that. Especially as USCIS, the agency that supervises the program, has actually been making the policies clearer and the processes much more rational and clear for individuals who are arranging investments and for the investors who are investing, even more individuals have actually wanted and able to put initiative and money into the procedure to find good tasks and create them, and after that much more investors have wanted to invest their money and take the risk and utilize the money to create the work that is the point of the program.

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These projects do not linger permanently, and USCIS comprehends that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, actually, they prepare 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 enacted in 1992, and ever since that program has been prolonged 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 expiration in September.


The procedure takes a good while to develop a task and after that to get the investors authorized. And they do not desire their money moving with until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already dissuading the development of jobs.

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I want to clear up that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 regulation that is part of the code. It just is a reality that a lot of the local facilities that are pooling investments have established those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, which makes feeling.