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First, the program is placed in a really strange and non-helpful governmental location for the excitement of global financial investment in the United States. Second, its scale is all incorrect. We are distributing way too much for as well little of a financial investment. Better, raising financial backing half a million dollars a tranche is, to state the least, ineffective.


The regional centers, with their half-million schemes, essentially undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to have to do with creating service entities, not passive investments. It ought to have to do with producing genuine work, not elaborate computations regarding the indirect development of jobs, which is now part of the legislation.


Possibly that is just one of the reasons that it has actually fallen short time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well full of middlemen, both public and private. The program has greater than its share of rumors, which I will certainly enter into later if anyone is interested.


This is an agency that enjoys to claim yes to candidates, yet as the table in my statement shows, USCIS officers have far more trouble with EB-5 applications than others. I think that is something that no one has actually really chatted around a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and completely reason

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Seventh, in this program visas most likely to people that could not obtain them any kind of other method and to individuals whose planned investment is actually much less, according to the Federal Reserve, than the average mean internet worth of all American families in 2007. Allow me broaden on among my observations.


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


So for every $100 of increased international investment that year, the EB program contributed one penny. Under a a lot more wobbly analytical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I look ahead to your remarks and concerns. [The ready declaration of David North looks like a submission for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method team.




Divine acted as Chief Advise of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program in private method. He was elected, as I recognize, vice president of the Organization to Spend in U.S.A., the nationwide market organization of regional.


Divine, we are happy to have you right here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, but it is growing and obtaining toward that. Especially as USCIS, the company that manages the program, has been making the guidelines clearer and the procedures more reasonable and clear for the people that are organizing financial investments and for the capitalists who are spending, more people have actually wanted and able to put effort and cash into the procedure to locate good jobs and establish them, and then a lot more financiers have agreed to spend their cash and take the threat and use the cash to produce the tasks that is the point of here the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, in truth, they are prepared to reject applications that are not certifying. And they do so, as was stated


The regional facility part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and given that then that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes a good while to function up a job and afterwards to get the capitalists approved. And they do not want their cash moving with until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already preventing the advancement of tasks.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 regulation that belongs to the code. It just is a fact that the majority of the regional facilities that are merging investments have established those instead of high unemployment or in backwoods where half- million-dollar investments are permitted, which makes good sense.