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The program is put in a very weird and non-helpful administrative location for the stimulation of global financial investment in the United States. We are offering away as well much for as well tiny of a financial investment.


The local facilities, with their half-million schemes, basically undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must have to do with producing organization entities, not passive financial investments. It ought to be about developing actual work, not elaborate computations concerning the indirect creation of jobs, which is now component of the legislation.


Possibly that is just one of the reasons that it has fallen short every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too filled with middlemen, both public and private. The program has greater than its share of detractions, which I will certainly enter later if any person is interested.


This is an agency that enjoys to state yes to applicants, but as the table in my testimony reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually actually chatted around a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently reason

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Seventh, in this program visas most likely to people who can not get them differently and to people whose organized investment is really much less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Let me broaden on among my monitorings.


My quote based on the financiers' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not provide the kind of information that we might make use of on this.


So for each $100 of raised international investment that year, the EB program added one cent. Under a a lot more shaky analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling journalists that the level of financial investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for listening to me. I look forward to your comments and questions. [The ready declaration of David North shows up as an entry 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 firm's migration practice team.




Divine acted as Principal Guidance of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program in private practice. He was chosen, as I recognize, vice head of state of the Organization to Invest in U.S.A., the nationwide industry association of local facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, but it is expanding and getting towards that. Especially as USCIS, the firm that oversees the program, has been making the guidelines clearer and the processes much more reasonable and clear for the people who are organizing investments and for the investors that are investing, more individuals have actually been eager and able to place effort and cash into the process to find excellent jobs and establish them, and after that a lot more investors have been prepared to spend their money and take the risk and utilize the cash to develop the jobs that is the point of the program.

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These jobs do not wait about forever, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was pointed out


The local facility part of the program is not. It becomes part of an appropriations costs that get more info was enacted in 1992, and considering that then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiration in September.


The process takes a good while to develop a project and afterwards to obtain the capitalists approved. And they do not want their money streaming via till they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the advancement of projects.

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I would love to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 legislation that becomes part of the code. It just is a fact that the majority of the regional facilities that are pooling investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes good sense.