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The program is put in a very weird and non-helpful governmental area for the stimulation of global financial investment in the United States. We are giving away too much for too tiny of a financial investment.


The local facilities, with their half-million systems, essentially damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, ought to be concerning creating organization entities, not easy investments. It must have to do with creating real work, not elaborate calculations regarding the indirect development of jobs, which is now part of the regulation.


Perhaps that is among the reasons that it has actually fallen short every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too filled up with middlemen, both public and personal. The program has greater than its share of scandals, which I will certainly get involved in later on if any person is interested.


This is a firm that likes to claim yes to applicants, yet as the table in my testament reveals, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that nobody has actually really spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and completely factor

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Seventh, in this program visas most likely to people that could not obtain them differently and to people whose organized financial investment is really less, according to the Federal Book, than the average mean total assets of all American households in 2007. Let me broaden on one of my observations.


My estimate based upon the capitalists' eco-friendly card applications submitted 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not provide the type of information that we could utilize on this.


So for every single $100 of enhanced foreign investment that year, the EB program contributed one dime. Under a far more wobbly statistical base, the initial applications of would-be immigrant financiers, USCIS is informing journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thank you for listening to me. I anticipate your remarks and questions. [The ready statement their explanation of David North looks like a submission 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 company's immigration technique group.




Divine functioned as Chief Guidance of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and then Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Organization to Invest in USA, the national market organization of local.


Divine, we are happy to have you here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND why not try this out BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (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 immigration every year to the United States. It is not near that yet, yet it is growing and getting towards that. Specifically as USCIS, the firm that oversees the program, has been making the regulations more clear and the procedures much more rational and clear for individuals that are arranging investments and for the investors who are investing, more individuals have been prepared and able to put initiative and cash right into the process to discover great jobs and develop them, and afterwards a lot more capitalists have actually been willing to invest their money and take the risk and make use of the money to develop the jobs that is the factor of the program.

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These projects do not wait around forever, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, as a matter of fact, they are all set to reject applications that are not qualifying. And they do so, as was discussed


The local center component of the program is not. It is component of an appropriations costs that was enacted in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a good while to develop a project and after that to get the capitalists approved. And they do browse around these guys not want their cash flowing with till they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of projects.

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I would love to clear up that the Regional Center Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 law that is component of the code. It simply is a fact that the majority of the regional facilities that are merging investments have established those in areas of high unemployment or in country areas where half- million-dollar investments are allowed, which makes good sense.