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First, the program is put in a very weird and non-helpful administrative area for the stimulation of global investment in the USA. Second, its range is all wrong. We are handing out excessive for as well little of an investment. Additionally, increasing endeavor funding fifty percent a million bucks a tranche is, to say the least, ineffective.


The local facilities, with their half-million plans, basically damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to be regarding creating business entities, not easy financial investments. It ought to be about producing real tasks, not specify computations concerning the indirect development of jobs, which is now part of the legislation.


Probably that is one of the reasons that it has actually stopped working year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also full of intermediaries, both public and personal. The program has more than its share of rumors, which I will certainly obtain into later on if anyone is interested.


This is an agency that loves to state yes to applicants, but as the table in my statement reveals, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals who can not obtain them any kind of various other way and to individuals whose scheduled investment is actually much less, according to the Federal Reserve, than the ordinary mean net worth of all American families in 2007. Let me increase on one of my observations.


My estimate based upon the financiers' permit applications submitted 2 years after the initial financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not supply the kind of data that we can utilize on this.


So for every $100 of increased international investment that year, the EB program added one dime. Under a much a lot more wobbly analytical base, the preliminary applications of would-be immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thanks for listening to me. I look ahead to your remarks and inquiries. [The prepared 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 method group.




Divine worked as Chief Advice of the United States Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has actually functioned extensively with the EB-5 program secretive method. He was chosen, as I recognize, vice president of the Association to Buy United States, the nationwide sector association of regional facilities.


Divine, we are thrilled to have you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, description BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were used, it would be 1 percent of the migration yearly to the United States. It is not near that yet, yet it is expanding and getting towards that. Particularly as USCIS, the agency that looks after the program, has been making the guidelines clearer and the here are the findings procedures extra sensible and clear for the individuals that are organizing financial investments and for the financiers who are spending, more individuals have wanted and able to put initiative and money into the procedure to find excellent jobs and develop them, and afterwards much more capitalists have actually wanted to spend their money and take the danger and use the money to produce the work that is the point of the program.

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These projects do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, actually, they prepare to deny applications that are not certifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to develop a project and after that my response to obtain the financiers approved. And they do not want their money streaming through up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently preventing the development of projects.

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I would certainly such as to clarify that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 regulation that becomes part of the code. It just is a truth that the majority of the regional centers that are merging investments have actually established those instead of high joblessness or in country areas where half- million-dollar investments are allowed, which makes good sense.