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The program is positioned in a very weird and non-helpful administrative place for the excitement of global investment in the United States. Second, its scale is all wrong. We are handing out way too much for as well little of an investment. Further, elevating financial backing half a million dollars a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million systems, essentially damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to be regarding developing business entities, not easy financial investments. It ought to have to do with creating genuine work, not elaborate calculations about the indirect production of tasks, which is now part of the regulations.


Perhaps that is just one of the reasons why it has failed year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with middlemen, both public and private. The program has more than its share of scandals, which I will certainly get involved in later if anybody is interested.


This is a company that enjoys to say yes to applicants, but as the table in my testament reveals, USCIS policemans have a lot extra problem with EB-5 applications than others. I believe that is something that nobody has actually truly spoken around a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and for great reason

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Seventh, in this program visas go to people that could not get them otherwise and to people whose planned financial investment is in fact much less, according to the Federal Book, than the average mean web well worth of all American families in 2007. Let me increase on one of my monitorings.


My quote based upon the capitalists' environment-friendly card applications filed 2 years after the first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not give the type of information that we might use on this.


So for every $100 of increased foreign financial investment that year, the EB program contributed one dime. Under a far more unsteady statistical base, the preliminary applications of would-be 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 approve that.

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Thank you for listening to me. I expect your remarks and inquiries. [The prepared statement of David North looks like a submission for the record.] 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 company's immigration technique group.




Divine worked as Chief Advise of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I recognize, vice president of the Organization to Spend in United States, the nationwide sector association of regional.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, 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 the majority of, if all 10,000 ports were utilized, it would be 1 percent of the immigration each year to the USA. It is not near that yet, but it is growing and obtaining towards that. Especially as USCIS, the company that looks after the program, has actually been making the regulations clearer and the procedures more rational and clear for individuals that are organizing financial investments and for the financiers who are investing, more individuals have actually agreed and able to place initiative and cash right into the procedure to locate excellent projects and establish them, and afterwards more capitalists have been ready to spend their money and take the threat and use the cash to develop the jobs that is the point of the program.

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These tasks do not wait about permanently, and USCIS recognizes that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, actually, they prepare to refute applications that are not certifying. And they do so, as was mentioned


The local center component of the program is not. It is part of an appropriations bill that was enacted in 1992, and considering that then that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the get more info day of expiration in September.


The procedure takes an excellent while to develop a task and afterwards to get the financiers authorized. And they do not desire their money streaming with up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already discouraging the development of tasks.

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I want to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 regulation that is component of the code. It simply is a truth that the majority of the local facilities that are merging financial investments have actually established those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes good sense.