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The program is put in a very weird and non-helpful governmental location for the stimulation of international financial investment in the United States. We are providing away also much for too little of an investment.


The local facilities, with their half-million plans, essentially undercut the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to be regarding producing service entities, not passive financial investments. It needs to be concerning producing genuine jobs, not clarify estimations concerning the indirect creation of tasks, which is currently component of the legislation.


Maybe that is one of the reasons it has stopped working time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with middlemen, both public and personal. The program has even more than its share of detractions, which I will certainly enter later if any person is interested.


This is an agency that likes to state yes to candidates, but as the table in my statement reveals, USCIS officers have a lot a lot more difficulty with EB-5 applications than others. I assume that is something that no one has actually really discussed much. EB5 Regional Center Program. There are high rates of inner rejections in this program and for good reason

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Seventh, in this program visas most likely to people who could not obtain them differently and to individuals whose organized investment is in fact much less, according to the Federal Get, than the typical mean total assets of all American family members in 2007. Allow me increase on among my observations.


My estimate based upon the financiers' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not provide the sort of information that we can use on this.


So for every single $100 of boosted foreign financial investment that year, the EB program contributed one penny. Under a much extra wobbly analytical base, the initial applications of prospective immigrant investors, USCIS is informing journalists that the level 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 expect your comments and inquiries. [The ready declaration of David North looks like a submission 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 team.




Divine served as Principal Counsel of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Director. He has functioned extensively with the EB-5 program secretive practice. He was elected, as I recognize, vice head of state of the Organization to Spend in USA, the national market association of local.


Divine, we are thrilled to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (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 used, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is growing and getting towards that. Especially as USCIS, the firm that supervises the program, has actually been making the policies more clear and the processes more sensible and clear for the people that are arranging financial investments and for the financiers who are investing, even more people have wanted and able to put effort and money into the procedure to find excellent jobs and create website them, and then much more capitalists have actually been willing to spend their cash and take the risk and use the cash to create the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, in reality, they prepare to refute applications that are not certifying. And they do so, as was stated


The local center part of the program is not. It is component of an appropriations costs that was enacted in 1992, and considering that then that program has been prolonged 5 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 expiration in September.


The procedure takes an excellent while to work up a task and after that to get the investors approved. And they do not desire their cash flowing through up until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of projects.

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I want to make clear that the Regional Center Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 law that becomes part of the code. It simply is a truth that many of the regional centers that are pooling financial investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes feeling.