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The program is placed in a really weird and non-helpful administrative area for the stimulation of international investment in the United States. We are providing away also much for as well small of a financial investment.


The local centers, with their half-million systems, essentially damaged the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should have to do with creating organization entities, not passive financial investments. It ought to be concerning creating actual tasks, not clarify calculations about the indirect creation of work, which is now component of the regulations.


Probably that is among the reasons that it has fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will certainly obtain into later if any person is interested.


This is a company that loves to say yes to candidates, but as the table in my statement reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I think that is something that no one has truly spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and for excellent factor

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Seventh, in this program visas go to individuals that can not get them otherwise and to individuals whose organized investment is really much less, according to the Federal Get, than the typical mean net worth of all American families in 2007. Let me broaden on among my observations.


My estimate based on the investors' copyright applications filed 2 years after the initial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not provide the type of data that we could make use of on this.


So for every single $100 of increased foreign investment that year, the EB program added one penny. Under a far more unsteady statistical base, the preliminary applications of potential immigrant investors, USCIS is informing journalists 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 listening to me. I expect your comments and concerns. [The ready declaration of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique team.




Divine served as Principal Counsel of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. 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 Buy U.S.A., the nationwide market association of local centers.


STATEMENT reference OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot 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, however it is expanding and obtaining towards that. Especially as USCIS, the agency that looks after the program, has been making the regulations more clear and the processes much you could try here more reasonable and clear for individuals who are arranging financial investments and for the financiers that are investing, more people have wanted and able to place initiative and cash into the process to locate great jobs and establish them, and then extra financiers have agreed to spend their cash and take the danger and make use of the cash to produce the work that is the point of the program.

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These tasks do not linger forever, and USCIS understands that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, in fact, they are all set to deny applications that are not certifying. And they do so, as was discussed


The regional facility component of the program is not. It becomes part of an appropriations expense that was established in 1992, and because then that program has been expanded 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 expiration in September.


The process takes a good while to develop a task and then to get the capitalists accepted. And they do not want their cash flowing with until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently preventing the development of jobs.

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I want to clarify 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 normal EB-5 law that belongs to the code. It simply is a reality that many of the regional facilities that are merging investments have set those instead of high joblessness or in country areas where half- million-dollar investments are allowed, and that see post makes good sense.