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The program is positioned in an extremely strange and non-helpful administrative place for the excitement of worldwide investment in the United States. We are giving away as well much for too little of an investment.


The local facilities, with their half-million plans, essentially damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to be about developing organization entities, not easy investments. It must have to do with creating genuine work, not specify estimations regarding the indirect production of tasks, which is currently part of the regulation.


Perhaps that is among the reasons it has actually failed time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too full of intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will certainly get right into later if anybody is interested.


This is a firm that likes to state yes to candidates, but as the table in my testament shows, USCIS police officers have far more trouble with EB-5 applications than others. I assume that is something that no one has actually truly spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently reason

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Seventh, in this program visas go to people who could not obtain them otherwise and to individuals whose organized financial investment is really less, according to the Federal Book, than the average mean net worth of all American family members in 2007. Allow me expand on among my monitorings.


My quote based on the investors' copyright applications filed 2 years after the initial financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not give the sort of data that we could use on this.


So for every $100 of boosted foreign investment that year, the EB program added one penny. Under a a lot more wobbly statistical base, the preliminary applications of would-be immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I eagerly anticipate your comments and questions. [The prepared statement of David North shows up as an entry for the document.] 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 method group.




Divine served as Chief Advise of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and then Acting Deputy Supervisor. He has functioned extensively with the EB-5 program secretive practice. He was chosen, as I comprehend, vice head of state of the Organization to Invest in United States, the nationwide sector organization of regional.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were utilized, it would be 1 percent of the immigration annually to the USA. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the firm that looks after the program, has actually been making the rules more clear and the procedures much more reasonable and clear for individuals that are organizing financial investments and for the investors who are investing, even more people have actually wanted and able to place effort and money into the procedure to discover good projects and establish them, and afterwards a lot more investors have wanted to invest their cash and take the danger and make use of the cash to produce the work that is the factor of the program.

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These projects do not wait around forever, and USCIS comprehends that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The local facility component of the program is not. It is component of an appropriations costs that was enacted in 1992, and since then that program has actually been prolonged 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 day of expiry in September.


The process takes a good while to work up a project and then to get the investors accepted. And they EB5 Regional Center Program do not desire their money flowing via up until they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is already preventing the advancement of jobs.

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I would love to make clear that the Regional Facility Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 regulation that is component of the code. It just is a reality that a lot of the regional facilities that are merging financial investments have actually established those in locations of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes good sense.