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The program is placed in a very strange and non-helpful administrative place for the stimulation of global investment in the United States. Second, its scale is all wrong. We are giving away way too much for also small of a financial investment. Further, raising financial backing half a million bucks a tranche is, to claim the least, inefficient.


The local centers, with their half-million schemes, basically undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, need to have to do with creating business entities, not passive investments. It needs to be regarding developing real tasks, not elaborate computations about the indirect development of work, which is now part of the regulation.


Maybe that is just one of the reasons that it has failed time after time to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too filled with intermediaries, both public and personal. The program has more than its share of scandals, which I will enter into later on if anybody is interested.


This is an agency that loves to claim yes to candidates, however as the table in my statement shows, USCIS police officers have much more difficulty with EB-5 applications than others. I believe that is something that no one has actually truly spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals who can not obtain them differently and to individuals whose scheduled financial investment is in fact less, according to the Federal Get, than the ordinary mean internet well worth of all American households in 2007. Let me expand on one of my observations.


My quote based upon the capitalists' permit applications submitted 2 years after the first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not supply the kind of information that we can make use of on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one cent. Under a much more unsteady statistical base, the first applications of potential immigrant financiers, USCIS is informing reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I expect your comments and inquiries. [The ready declaration of David North looks like an entry for the record.] 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 immigration practice group.




Divine acted as Chief Guidance of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Deputy Supervisor. He has actually functioned extensively with the EB-5 program secretive practice. He was chosen, as I understand, about his vice head of state of the Organization to Buy USA, the national market organization of regional facilities.


DECLARATION 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 the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, however it is growing and obtaining towards that. Particularly as USCIS, the company that looks after the program, has actually been making the guidelines clearer and the procedures a lot more reasonable and clear for the individuals that are organizing investments and for the investors that are investing, even more individuals have wanted and able to place initiative and cash right into the procedure to discover great jobs and create them, and afterwards extra investors have agreed to invest their money great post to read and take the risk and utilize the money to create the jobs that is the point of the program.

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These projects do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, actually, they are prepared to reject applications that are not qualifying. And they do so, as was mentioned


The local center component of the program is not. It is component of an appropriations bill that was passed in 1992, and given that then that program has been extended five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes an excellent while to develop a project and after that to get the investors approved. And they do not desire their cash streaming via up until they have actually been authorized. And the specter of the expiry of this Regional Facility Program More Help in September is currently dissuading the growth of tasks.

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I would certainly like to clarify that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 law that belongs to the code. It just is a fact that the majority of the regional facilities that are merging investments have actually established those instead of high unemployment or in backwoods where half- million-dollar financial investments are permitted, and that makes good sense.