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The program is placed in a really odd and non-helpful governmental area for the excitement of worldwide investment in the United States. We are giving away as well much for as well tiny of a financial investment.


The local centers, with their half-million schemes, basically undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to have to do with producing service entities, not easy investments. It must have to do with creating real tasks, not clarify calculations concerning the indirect creation of jobs, which is currently part of the regulation.


Perhaps that is just one of the reasons it has actually fallen short every year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too full of intermediaries, both public and personal. The program has even more than its share of detractions, which I will enter into later on if anyone is interested.


This is a company that loves to state yes to candidates, but as the table in my testimony reveals, USCIS officers have much more trouble with EB-5 applications than others. I believe that is something that nobody has really spoken around much. EB5 Regional Center Program. There are high prices of inner rejections in this program and for excellent factor

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Seventh, in this program visas go to individuals that could not get them differently and to people whose organized investment is actually much less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Let me expand on among my monitorings.


My quote based on the capitalists' permit applications submitted 2 years after the initial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not provide the kind of data that we could use on this.


For every $100 of enhanced international investment that year, the EB program added one cent. Under a much a lot more wobbly analytical base, the initial applications of potential immigrant financiers, USCIS is informing journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I anticipate your comments and questions. [The ready statement of David North appears as an entry for the document.] Chairman Leahy. Thank you. 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 team.




Divine served as Chief Advise of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive method. He was elected, as I understand, vice president of the Association to Purchase United States, the Full Article nationwide sector organization of regional centers.


Divine, we are happy to have you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the migration every year to the United States. It is not near that yet, yet it is expanding and getting toward that. Specifically as USCIS, the firm that manages imp source the program, has actually been making the regulations clearer and the processes extra logical and clear for the people that are organizing investments and for the financiers who are investing, more individuals have actually agreed and able to put initiative and money right into the procedure to locate excellent tasks and develop them, and afterwards extra financiers have actually agreed to invest their cash and take the threat and utilize the money to develop the jobs that is the point of the program.

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These jobs do not wait around for life, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has actually 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 procedure takes a good while to develop a task and after that to get the financiers approved. And they do not desire their money moving through until they read more have been approved. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of jobs.

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I want to clarify that the Regional Center Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It simply is a truth that the majority of the regional centers that are merging financial investments have established those in places of high unemployment or in backwoods where half- million-dollar investments are permitted, which makes feeling.