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The program is placed in an extremely odd and non-helpful bureaucratic location for the excitement of international investment in the United States. We are giving away also much for as well little of a financial investment.


The regional facilities, with their half-million plans, essentially undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with producing company entities, not easy investments. It ought to be about producing actual work, not specify estimations about the indirect creation of jobs, which is currently part of the regulations.


Maybe that is just one of the reasons it has fallen short every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will enter into later if anyone is interested.


This is a firm that loves to claim yes to applicants, but as the table in my statement reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and for excellent factor

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Seventh, in this program visas most likely to individuals that can not obtain them any kind of various other means and to individuals whose scheduled investment is actually less, according to the Federal Get, than the average mean net worth of all American households in 2007. Allow me broaden on among my monitorings.


My quote based upon the capitalists' environment-friendly card applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not provide the kind of information that we can make use of on this.


So for every single $100 of raised international financial investment that year, the EB program contributed one penny. Under a much more wobbly analytical base, the first applications of prospective immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I look onward to your remarks and questions. [The prepared declaration of David North shows up as a submission for the record.] Chairman Leahy. Thank you. 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 migration practice team.




Divine functioned as Chief Counsel of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has actually functioned extensively with the EB-5 program in exclusive technique. He was chosen, as I comprehend, vice president of the Organization to Invest in United States, the national sector association of local.


STATEMENT OF ROBERT C. DIVINE, LAWYER, 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, Senator Grassley, and others.


At the majority of, if all 10,000 slots were used, it would be 1 percent of the migration look at this now every year to the USA. It is not near that yet, however it is growing and obtaining toward that. Specifically as USCIS, the company that oversees the program, has actually been making the rules clearer and the procedures much more sensible and clear for individuals that are arranging investments and for the capitalists who are investing, even more individuals have been ready and able to put effort and cash right into the process to discover great tasks and develop them, and after that more financiers have actually agreed to invest their cash and take the threat and use the money to produce the work that Learn More is the factor of the program.

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These jobs do not linger permanently, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, actually, they prepare to refute applications that are not certifying. And they do so, as was stated


The regional facility part of the program is not. It is component of an appropriations bill that was passed in 1992, and because 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 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 get the financiers accepted. And they do not want their cash flowing with till they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of projects.

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I want to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 law that belongs to this the code. It just is a reality that most of the regional centers that are pooling investments have set those instead of high joblessness or in country locations where fifty percent- million-dollar financial investments are permitted, which makes feeling.