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The program is positioned in an extremely odd and non-helpful governmental place for the stimulation of worldwide financial investment in the United States. We are providing away as well much for as well tiny of an investment.


The local centers, with their half-million plans, basically undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with creating service entities, not passive investments. It must have to do with developing real work, not clarify computations about the indirect creation of tasks, which is now component of the legislation.


Maybe that is one of the reasons it has failed every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too loaded with intermediaries, both public and personal. The program has even more than its share of rumors, which I will enter into later on if anybody is interested.


This is a firm that likes to claim yes to applicants, but as the table in my testimony shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has actually actually discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and permanently factor

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Seventh, in this program visas go to individuals who might not obtain them differently and to people whose scheduled investment is actually less, according to the Federal Book, than the average mean net well worth of all American family members in 2007. Let me expand on among my monitorings.


My quote based upon the capitalists' eco-friendly card applications submitted 2 years after the very first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not give the type of information that we could make use of on this.


So for each $100 of enhanced foreign financial investment that year, the EB program contributed one dime. Under a much extra wobbly analytical base, the first applications of prospective immigrant financiers, USCIS is informing reporters 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 eagerly website link anticipate your comments and concerns. [The ready declaration of David North shows up as an entry for the document.] Chairman Leahy. Thanks. 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 team.




Divine acted as Principal Advice of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has actually worked thoroughly with the EB-5 program in private practice. He was chosen, as I recognize, vice head of state of the Association to Buy U.S.A., the nationwide market organization of local centers.


Divine, we are thrilled to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, but it is growing and getting towards that. Specifically as USCIS, the agency that looks after the program, has been these details making the guidelines more clear and the procedures more rational and clear for individuals who are organizing financial investments and for the capitalists who are investing, even more people have been eager and able to put initiative and money right into the procedure to find excellent tasks and establish them, and after that more financiers have actually wanted to spend their cash and take the danger and utilize the cash to develop the work that is the point of the program.

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These jobs do not linger forever, and USCIS comprehends that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, in truth, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The local facility part of the program is not. It is part of an appropriations costs that was enacted in 1992, and considering that then that program has actually been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to develop a task and afterwards to get the capitalists authorized. And they do not desire their cash moving with up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth of jobs.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea you can find out more of half a million or a million is a feature of the normal EB-5 legislation that is component of the code. It just is a fact that a lot of the regional facilities that are pooling financial investments have actually set those instead of high unemployment or in country areas where half- million-dollar investments are allowed, and that makes good sense.