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The program is placed in an extremely weird and non-helpful bureaucratic place for the stimulation of worldwide financial investment in the United States. We are giving away as well much for too little of a financial investment.


The regional centers, with their half-million systems, basically undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to be concerning producing service entities, not easy financial investments. It needs to be about creating real jobs, not clarify estimations concerning the indirect creation of jobs, which is currently component of the legislation.


Maybe that is among the reasons that it has actually stopped working year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of intermediaries, both public and personal. The program has greater than its share of detractions, which I will get involved in later on if anybody is interested.


This is a company that likes to say yes to applicants, yet as the table in my testament reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that no one has really spoken around much. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently reason

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Seventh, in this program visas go to individuals that might not obtain them otherwise and to individuals whose planned investment is actually less, according to the Federal Get, than the ordinary mean net worth of all American households in 2007. Allow me expand on among my observations.


My quote based upon the investors' copyright applications filed 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 quote. USCIS does not provide the kind of information that we could make use of on this.


For every $100 of boosted foreign investment that year, the EB program added one cent. Under a far more shaky analytical base, the preliminary applications of potential immigrant capitalists, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I anticipate your remarks and inquiries. [The prepared statement of David North appears as a submission for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice group.




Divine functioned as Chief Advice of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Director. He has actually worked thoroughly with the EB-5 program secretive method. He was elected, as I understand, vice president of the Organization to Spend in USA, the national market organization of local.


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. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, yet check here it is expanding and obtaining towards that. Specifically as USCIS, the agency that supervises the program, has actually been making the policies more clear and the procedures a lot more logical and clear for individuals who are arranging investments and for the capitalists that are spending, more people have actually wanted and able to put initiative and cash into the procedure to locate good projects and establish them, and after that much more capitalists have actually agreed to invest their cash and take the threat and use the cash to develop the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, in reality, they are ready to deny applications that are not qualifying. And they do so, as was pointed out


The regional center component of the program is not. It belongs to an appropriations bill that was enacted in 1992, and because then that program has been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The procedure takes an excellent while to function up a job and afterwards to obtain the investors accepted. And they do not want their money flowing through till they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently preventing the advancement of jobs.

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I want to clear up that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 legislation that is component of the code. It just is a fact that the majority of the regional facilities that are merging financial investments have established those in areas of high unemployment or in rural areas where fifty percent- million-dollar investments are allowed, which makes good sense.