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The program is placed in an extremely odd and non-helpful bureaucratic area for the stimulation of worldwide financial investment in the United States. We are offering away also much for also little of a financial investment.


The local centers, with their half-million schemes, essentially damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, must be about creating company entities, not passive financial investments. It should have to do with producing genuine jobs, not elaborate calculations about the indirect production of jobs, which is currently component of the legislation.


Possibly that is among the reasons that it has fallen short time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too full of middlemen, both public and exclusive. The program has even more than its share of scandals, which I will certainly get involved in later on if anyone is interested.


This is a firm that enjoys to say yes to applicants, but as the table in my statement shows, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever reason

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Seventh, in this program visas most likely to people that might not obtain them otherwise and to individuals whose organized financial investment is in fact much less, according to the Federal Get, than the ordinary mean total assets of all American families in 2007. Let me expand on one of my monitorings.


My price quote based upon the financiers' environment-friendly card applications filed 2 years after the initial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not give the sort of information that we could use on this.


For every $100 of raised foreign investment that year, the EB program added one cent. Under a far more shaky statistical base, the preliminary applications of prospective immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I expect your remarks and inquiries. [The ready statement of David North shows up as 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 company's migration technique group.




Divine basics functioned as Principal Advice of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Replacement Director. He has functioned extensively with the EB-5 program in private method. He was elected, as I comprehend, vice head of state of the Organization to Invest in U.S.A., the nationwide market association of regional.


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. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, however it is growing and obtaining towards that. Particularly as USCIS, the agency that supervises the program, has been making the policies more clear and the procedures extra logical and clear for the people who are arranging investments and for the capitalists that are spending, even more people have wanted and able to put effort and cash right into the procedure to locate good projects and establish them, and afterwards more investors have actually agreed to invest their money and take the danger and use the cash to develop the jobs that is the point of the program.

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These projects do not linger for life, and USCIS understands that and are trying to speed the program, click over here speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was stated


The local facility part of the program is not. It belongs to an appropriations bill that was established in 1992, and ever since that visite site program has been expanded five 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 great while to function up a task and afterwards to obtain the investors accepted. And they do not want their cash moving through until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already dissuading the advancement of tasks.

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I would certainly such as to clarify that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 legislation that belongs to the code. It simply is a truth that the majority of the local centers that are pooling investments have set those in places of high unemployment or in backwoods where half- million-dollar investments are enabled, which makes good sense.