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The program is positioned in an extremely odd and non-helpful governmental location for the stimulation of worldwide financial investment in the United States. We are providing away too much for too little of an investment.


The regional facilities, with their half-million plans, essentially damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with producing business entities, not passive financial investments. It needs to be regarding creating actual jobs, not specify computations regarding the indirect creation of work, which is now component of the regulation.


Possibly that is one of the factors why it has failed year after year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also full of intermediaries, both public and private. The program has greater than its share of scandals, which I will obtain right into later if anyone is interested.


This is a firm that loves to say yes to applicants, but as the table in my statement shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I think that is something that no one has actually really chatted about a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and completely reason

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Seventh, in this program visas go to people that can not get them differently and to individuals whose scheduled investment is actually less, according to the Federal Get, than the typical mean web well worth of all American family members in 2007. Allow me increase on one of my observations.


My quote based upon the capitalists' permit applications submitted 2 years after the very first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not provide the sort of data that we could utilize on this.


So for each $100 of boosted foreign investment that year, the EB program contributed one cent. Under a much more unsteady analytical base, the first applications of would-be immigrant capitalists, USCIS is informing reporters that the degree of financial investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and questions. [The ready declaration of David North looks like an entry for the record.] Chairman Leahy. Thanks. 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 worked as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and then Acting Deputy Director. He has functioned extensively with the EB-5 program secretive method. He was chosen, as I recognize, vice head of state of the Organization to Invest in United States, the national industry association of local.


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


At a lot of, 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 obtaining towards that. Especially as USCIS, the agency that manages the program, has been making the guidelines clearer and the processes extra rational and clear for individuals that are organizing financial investments and for the financiers who are spending, even more people have actually agreed and able to place effort and money into the process to find good jobs and create them, and then extra investors have actually wanted to invest their money and take the danger and utilize the cash to develop the tasks that is the factor of the program.

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These projects do not wait about forever, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they are ready to refute applications that are not certifying. And they do so, as was stated


The local center component of the program is not. It becomes part of an appropriations bill that was established in 1992, and because then that program has actually been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes an excellent while to develop a job and afterwards to get the investors approved. And they do not want their cash flowing with up until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the growth of jobs.

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I would love to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 law that belongs to the code. It simply is a reality that the majority of the regional facilities that are merging financial investments have established those in areas of high joblessness or in country locations where fifty percent- million-dollar investments are allowed, which makes feeling.