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


The local facilities, with their half-million plans, essentially damaged the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with developing organization entities, not easy financial investments. It needs to be concerning developing actual jobs, not clarify estimations concerning the indirect development of tasks, which is now part of the legislation.


Perhaps that is just one of the reasons that it has actually stopped working every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will obtain into later on if any person is interested.


This is a firm that likes to claim yes to applicants, yet as the table in my testament reveals, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has actually really chatted around a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and for excellent factor

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Seventh, in this program visas go to people who can not get them otherwise and to people whose scheduled financial investment is actually less, according to the Federal Get, than the average mean web worth of all American families in 2007. Let me broaden on one of my observations.


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


For every $100 of enhanced international financial investment that year, the EB program contributed one dime. Under a much a lot more wobbly analytical base, the first applications of would-be immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for listening to me. I eagerly anticipate your remarks and questions. [The prepared statement of David North looks like an entry 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 immigration technique group.




Divine worked as Chief Counsel of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Director, and then Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program in private method. He was elected, as I recognize, vice president of the Association to Purchase USA, the national sector organization of local facilities.


DECLARATION 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, Senator Grassley, and others.


At a lot of, if all 10,000 ports 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 getting towards that. Specifically as USCIS, the agency that looks after the program, has actually been making the rules clearer and the procedures a lot more rational and clear for individuals that are organizing investments and for the financiers who are spending, even more people have actually wanted and able to put initiative and cash into the process to discover great tasks and establish them, and afterwards much more investors have actually wanted to invest their money and here take the danger and use the cash to create the tasks that is the factor of the program.

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These tasks do not wait about forever, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, in fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It belongs to an appropriations expense that was enacted in 1992, and given that then that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a good while to develop a task and after that to get the investors accepted. And they do not desire their money streaming through until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already preventing the advancement of tasks.

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I wish to clarify that the Regional Center Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 legislation that is part of the code. It just is a reality that a lot of the regional centers that are merging financial investments have established those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes sense.