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The program is placed in a very weird and non-helpful administrative place for the stimulation of worldwide financial investment in the United States. We are giving away too much for too little of a financial investment.


The regional centers, with their half-million schemes, essentially undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with producing company entities, not passive financial investments. It ought to have to do with creating genuine jobs, not specify estimations about the indirect creation of work, which is currently component of the legislation.


Possibly that is one of the factors why it has stopped working year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also full of middlemen, both public and personal. The program has even more than its share of detractions, which I will certainly enter into later on if anyone is interested.


This is a company that likes to state yes to candidates, yet as the table in my statement shows, USCIS policemans have much extra difficulty with EB-5 applications than others. I assume that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and for great reason

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Seventh, in this program visas go to people who could not obtain them differently and to individuals whose organized financial investment is really much less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Let me broaden on one of my observations.


My price quote based upon the investors' permit applications filed 2 years after the initial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not give the kind of data that we could utilize on this.


For every $100 of increased international financial investment that year, the EB program added one cent. Under a a lot more wobbly statistical base, the initial applications of prospective immigrant financiers, USCIS is informing reporters that the degree 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 paying attention to me. I look ahead to your remarks and inquiries. [The ready declaration of David North shows up as an entry for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice group.




Divine acted as Chief Advice of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Acting Replacement Director. He has actually worked thoroughly with the EB-5 program secretive technique. He was chosen, as I understand, vice president of the Organization to Spend in USA, the national industry organization of local.


Divine, we are delighted more info to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, however it is expanding and obtaining toward that. Particularly as USCIS, the agency that looks after the program, has actually been making the rules more clear and the procedures a lot more logical and clear for individuals who are organizing financial investments and for the investors who are investing, more individuals have wanted and able to put effort and money right into the process to discover good projects and develop them, and after that more capitalists have been willing to invest their cash and take the threat and use the cash to produce the jobs that is the factor of the program.

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These tasks do not linger for life, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, in reality, they are all set to deny applications that are not certifying. And they do so, as was pointed out


The regional facility component of the program is not. It becomes part of an appropriations expense that was established in 1992, and since then that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes a great while to function up a project and after that to obtain the capitalists approved. And they do not desire their money streaming with up until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently preventing the growth of tasks.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 regulation that becomes part of the code. It simply is a fact that a lot of the local centers that are pooling financial investments have actually set those in places of high joblessness or in backwoods where fifty percent- million-dollar investments are permitted, and that makes good sense.