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The program is positioned in a very strange and non-helpful governmental location for the excitement of international investment in the United States. We are giving away as well much for too tiny of an investment.


The local centers, with their half-million systems, basically damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, should have to do with creating company entities, not passive financial investments. It should be concerning producing real work, not specify computations about the indirect production of work, which is now part of the regulation.


Maybe that is one of the reasons it has fallen short time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of middlemen, both public and personal. The program has greater than its share of scandals, which I will get involved in later if any person is interested.


This is an agency that likes to state yes to applicants, but as the table in my testament shows, USCIS policemans have a lot a lot more trouble with EB-5 applications than others. I think that is something that no one has actually truly discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently reason

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Seventh, in this program visas go to individuals that can not get them otherwise and to individuals whose organized financial investment is really much less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Allow me broaden on among my observations.


My price quote based upon the financiers' permit applications submitted 2 years after the initial investment-- these are the strong 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 give the sort of information that we might use on this.


For every $100 of raised foreign financial investment that year, the EB program added one dime. Under a far more shaky analytical base, the preliminary applications of potential immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with Going Here $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I eagerly anticipate your comments and inquiries. [The prepared statement of David North shows up as an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice group.




Divine served as Principal Advise of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program in exclusive method. He was chosen, as I understand, vice head of state of the Organization to Spend in USA, the nationwide market association of regional.


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


At many, if all 10,000 ports were used, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, however it is expanding and obtaining toward that. Specifically as USCIS, the firm that oversees the program, has actually been making the guidelines clearer and the processes more rational and clear for individuals that are arranging investments and for the capitalists who are investing, even more individuals have actually agreed and able to place initiative and cash right into the process to locate great tasks and create them, and after that more investors have actually wanted to invest their cash and take the danger and make use of the money to produce the work that is the factor of the program.

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These jobs do not linger forever, and USCIS comprehends that and are look at here trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, as a matter of fact, they are prepared to reject applications that are not qualifying. And they do so, as was pointed out


The local center component of the program is not. It belongs to an appropriations bill that was passed in 1992, and considering that then that program has actually been expanded 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 expiration in September.


The procedure takes a great while to function up a job and afterwards to get the investors accepted. And they do not desire their money streaming with till they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already discouraging the advancement of projects.

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I would love to clarify that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 law that belongs to the code. It just is a reality that a lot of the local centers that are pooling investments have actually set those in places of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.