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The program is put in an extremely strange and non-helpful governmental location for the stimulation of worldwide financial investment in the United States. We are giving away as well much for as well tiny of an investment.


The local centers, with their half-million schemes, basically undercut the 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, ought to be about producing company entities, not easy investments. It should be concerning creating actual tasks, not elaborate calculations regarding the indirect creation of work, which is currently part of the regulation.


Possibly that is among the reasons that it has actually failed time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also full of middlemen, both public and private. The program has more than its share of scandals, which I will certainly obtain right into later on if anybody is interested.


This is an agency that enjoys to say yes to applicants, however as the table in my testament shows, USCIS police officers have much a lot more problem with EB-5 applications than others. I think that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and completely factor

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Seventh, in this program visas go to individuals who might not obtain them differently and to individuals whose organized financial investment is in fact much less, according to the Federal Book, than the typical mean web worth of all American households in 2007. Allow me broaden on one of my observations.


My estimate based upon the capitalists' environment-friendly card applications filed 2 years after the first investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not provide the kind of information that we can use on this.


For every $100 of increased foreign financial investment that year, the EB program contributed one penny. Under a a lot more shaky analytical base, the preliminary applications of potential immigrant investors, USCIS is informing journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and concerns. [The prepared statement 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 migration technique group.




Divine functioned as Chief Counsel of the United States Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and then Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I understand, vice president of the Association to Spend in U.S.A., the national sector association of local centers.


Divine, we are delighted to have you below. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the migration every year to the USA. It is not click here near that yet, however it is growing and obtaining towards that. Particularly as USCIS, the company that manages the program, has been making the rules more clear and the procedures extra rational and clear for individuals that are arranging financial investments and for the investors that are spending, more people have been eager and able to put initiative and cash right into the process to find great tasks and create them, and after that more capitalists have wanted to spend their money and take the risk and make use of the cash to create the tasks that is the factor of the program.

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These jobs do not wait about forever, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was stated


The regional facility part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to develop a project and then 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 expiration of this Regional Facility Program in September is currently preventing 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 point. The idea of half a million or a million is a function of the routine EB-5 regulation that is part of the code. It just is a truth that a lot of the local centers that are merging investments have established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes good sense.