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The program is positioned in an extremely weird and non-helpful bureaucratic location for the stimulation of worldwide investment in the United States. Second, its scale is all wrong. We are providing away excessive for too tiny of a financial investment. Better, elevating financial backing half a million bucks a tranche is, to state the least, inefficient.


The regional centers, with their half-million plans, essentially damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to be concerning developing service entities, not easy financial investments. It should have to do with creating genuine jobs, not clarify calculations about the indirect creation of jobs, which is currently component of the regulation.


Probably that is one of the reasons it has actually failed year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has more than its share of rumors, which I will enter into later on if anyone is interested.


This is a company that likes to claim yes to candidates, yet as the table in my testimony shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and for excellent factor

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Seventh, in this program visas go to people who could not obtain them differently and to people whose scheduled investment is really less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Allow me expand on among my monitorings.


My price quote based upon the financiers' permit applications filed 2 years after the first financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not offer the type of data that we could use on this.


So for every single $100 of enhanced international financial investment that year, the EB program added one cent. Under a much a lot more shaky analytical base, the preliminary applications of would-be immigrant investors, USCIS is informing reporters that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for listening to me. I eagerly anticipate your comments and concerns. [The prepared declaration of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration technique group.




Divine worked as Principal Advice of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was elected, as I recognize, vice head of state of the Organization to Invest in United States, the nationwide industry organization why not try this out of regional.


Divine, we are pleased to have you here. Please proceed, 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, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were utilized, it would be 1 percent of the migration yearly to the United States. It is not near More Help that yet, but it is growing and obtaining towards that. Particularly as USCIS, the firm that oversees the program, has been making the rules clearer and the processes a lot more logical and clear for individuals that are organizing financial investments and for the investors who are spending, even more people have wanted and able to put effort and money right into the process to locate excellent jobs and create them, and after that more financiers have actually been willing to spend their cash and take the risk and utilize the cash to produce the tasks that is the point of the program.

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These tasks do not wait about for life, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, actually, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The regional facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes a good while to develop a job and then to obtain the capitalists accepted. And they do not desire their money moving via until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already dissuading the growth of tasks.

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I would certainly such as to clear up that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the routine click now EB-5 legislation that becomes part of the code. It simply is a reality that many of the regional centers that are pooling investments have actually set those instead of high unemployment or in backwoods where half- million-dollar investments are permitted, which makes good sense.