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The program is put in a very strange and non-helpful bureaucratic area for the stimulation of global financial investment in the United States. We are giving away also much for too little of an investment.


The regional centers, with their half-million plans, essentially damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to be concerning developing organization entities, not easy financial investments. It needs to have to do with developing actual work, not specify computations about the indirect creation of jobs, which is now part of the legislation.


Maybe that is among the reasons it has stopped working time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also full of middlemen, both public and private. The program has more than its share of rumors, which I will get involved in later on if anyone is interested.


This is an agency that likes to say yes to applicants, yet as the table in my testament shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I think that is something that no one has really chatted around a lot. 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 go to individuals that can not obtain them otherwise and to people whose planned investment is actually less, according to the Federal Reserve, than the typical mean web worth of all American households in 2007. Allow me expand on one of my monitorings.


My quote based upon the investors' environment-friendly card applications submitted 2 years after the very first investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not supply the type of data that we could use on this.


For every $100 of boosted international investment that year, the EB program contributed one cent. Under a far more unsteady statistical base, the preliminary applications of potential immigrant capitalists, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for listening to me. I anticipate your comments and inquiries. [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 company's migration method group.




Divine acted as Principal Counsel of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has worked thoroughly with the EB-5 program in exclusive practice. He was chosen, as I understand, vice president of the Association to Spend in United States, the nationwide sector organization of regional.


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


At the majority of, if all 10,000 ports were utilized, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the agency that looks after the program, has actually been making the regulations clearer and the processes much more logical and clear for the individuals who are organizing investments and for the investors who are spending, even more people have wanted and able to place initiative and cash into the process to find great tasks and create them, and afterwards a lot more capitalists have actually wanted to invest their cash and take the threat and make use of the cash to develop the work that is the factor of the program.

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These jobs do not linger forever, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, in reality, they prepare 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 component of an appropriations expense that was enacted in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes a good while to develop a job and after that to obtain the financiers approved. And they do not want their cash streaming via until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the advancement of jobs.

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I want to clarify that the Regional Facility Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a function of more info the normal EB-5 legislation that belongs to the code. It just is a truth that many of the local centers that are pooling investments have actually established those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes good sense.