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The program is positioned in a very odd and non-helpful governmental location for the stimulation of worldwide investment in the United States. We are offering away as well much for as well tiny of an investment.


The local centers, with their half-million schemes, basically undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to have to do with creating organization entities, not easy investments. It ought to be regarding developing real work, not clarify estimations regarding the indirect creation of work, which is now component of the regulation.


Maybe that is one of the reasons that it has stopped working every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also loaded with intermediaries, both public and private. The program has greater than its share of scandals, which I will enter into later on if anybody is interested.


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

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Seventh, in this program visas most likely to individuals that can not obtain them otherwise and to individuals whose scheduled financial investment is really much less, according to the Federal Book, than the typical mean total assets of all American family members in 2007. Allow me expand on among my monitorings.


My quote based on the financiers' permit applications filed 2 years after the first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not supply the kind of information that we might make use of on this.


For every $100 of enhanced international financial investment that year, the EB program added one penny. Under a far more shaky statistical base, the initial applications of prospective immigrant investors, USCIS is telling journalists that the degree of financial investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thanks for listening to me. I anticipate your comments and questions. [The prepared declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine worked as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has actually functioned thoroughly with the EB-5 program in private method. He was elected, as I understand, vice president of the Association to Invest in United States, the nationwide sector association of regional facilities.


Divine, we are pleased to have you below. Please go on, sir. DECLARATION 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. Thank you, Mr. Chairman, Senator Grassley, and website others. Thanks for having me.


At the majority of, if all 10,000 slots were used, it would be 1 percent of the migration yearly to the USA. It is not near that yet, however it is growing and getting toward that. Specifically as USCIS, the company that oversees the program, has been making the policies clearer and the processes more sensible and clear for individuals that are organizing investments and for the capitalists who are investing, even more individuals have agreed and able to put effort and cash into the process to discover excellent projects and develop them, and afterwards much more investors have wanted to invest their cash and take the risk and make use of the cash to develop the jobs that is the factor of the program.

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These tasks do not wait about permanently, and USCIS understands 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 prepare to deny applications that are not qualifying. And they do so, as was discussed


The regional center component of the program is not. It becomes part of an appropriations expense that was passed in 1992, and since then that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes a good while to work up a project and afterwards to get the capitalists authorized. And they do not want their money flowing through till they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already discouraging the development of projects.

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I want to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 regulation that is component of the code. It just is a reality that the majority of the local facilities that are pooling financial investments have set those instead of high unemployment or in country locations where fifty percent- million-dollar investments are enabled, which makes sense.