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The program is positioned in a really odd and non-helpful administrative location for the excitement of international financial investment in the United States. We are offering away as well much for as well little of an investment.


The regional centers, with their half-million plans, essentially damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to have to do with creating company entities, not passive financial investments. It should have to do with producing real jobs, not clarify calculations regarding the indirect production of work, which is currently component of the regulations.


Maybe that is just one of the reasons that it has actually fallen short time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will certainly get involved in later on if anybody is interested.


This is a company that enjoys to claim yes to applicants, but as the table in my testament shows, USCIS officers have far more problem with EB-5 applications than others. I assume that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever factor

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Seventh, in this program visas go to people that can not obtain them otherwise and to people whose planned financial investment is actually much less, according to the Federal Book, than the ordinary mean net worth of all American families in 2007. Allow me broaden on one of my monitorings.


My estimate based upon the financiers' permit applications submitted 2 years after the initial financial investment-- these are the solid 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 supply the kind of information that we might use on this.


For every $100 of raised foreign investment that year, the EB program added one cent. Under a a lot more unsteady analytical base, the first applications of potential immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year link had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I eagerly anticipate your comments 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 an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method team.




Divine served as Chief Guidance of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Acting Replacement Director. He has actually worked thoroughly with the EB-5 program secretive technique. He was chosen, as I understand, vice president of the Organization to Invest in U.S.A., the nationwide industry association of local.


Divine, we are pleased to have you below. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, yet it is expanding and obtaining towards that. Especially as USCIS, the firm that supervises the program, has been check my reference making the policies more clear and the procedures much more reasonable and clear for the people that are arranging financial investments and for the financiers that are spending, even more individuals have actually wanted and able to place initiative and cash right into the process to discover good projects and establish them, and afterwards a lot more investors have actually agreed to spend their cash and take the threat and make use of the money to create the jobs that is the factor of the program.

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These jobs do not wait find this around for life, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in reality, they prepare to refute applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It belongs to an appropriations expense that was enacted in 1992, and considering that then that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a great while to develop a task and then to get the financiers accepted. And they do not desire their cash moving through up until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already preventing the development of jobs.

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I want to clear up that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 regulation that becomes part of the code. It simply is a fact that the majority of the regional facilities that are pooling investments have actually set those in places of high joblessness or in rural locations where fifty percent- million-dollar investments are enabled, and that makes sense.