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The program is placed in a really weird and non-helpful governmental place for the excitement of international investment in the United States. We are offering away as well much for also tiny of a financial investment.


The local facilities, with their half-million schemes, essentially damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should have to do with producing business entities, not passive financial investments. It should have to do with creating real jobs, not elaborate calculations about the indirect development of tasks, which is now part of the legislation.


Possibly that is among the reasons it has fallen short year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well filled up with middlemen, both public and private. The program has greater than its share of scandals, which I will enter into later on if anyone is interested.


This is a company that likes to state yes to candidates, however as the table in my statement shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has truly talked about much. EB5 Regional Center Program. There are high rates of interior denials in this program and for good reason

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


My price quote based on the capitalists' environment-friendly card applications filed 2 years after the very first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not supply the type of information that we could use on this.


For every $100 of boosted international investment that year, the EB program added one penny. Under a a lot more unsteady analytical base, the first applications of potential immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I look onward to your remarks and questions. [The prepared declaration of David North looks like a submission 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 immigration technique team.




Divine acted as Principal Advise of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and then Acting Replacement Supervisor. He has actually worked thoroughly with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Association to Invest in U.S.A., the national market association of regional.


STATEMENT 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 many, if all 10,000 slots were used, it would be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Especially as USCIS, the company that manages the program, has actually been making the regulations more clear and the procedures a lot more sensible and clear for individuals who are organizing financial investments and for the capitalists that are spending, more people have actually wanted and able to place initiative and money into the procedure to discover good projects and develop them, and after that more capitalists have actually wanted to spend their cash and take the threat and utilize the cash to develop the tasks that is the point of the program.

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These tasks do not linger for life, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, as a matter of fact, they are all set to deny applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It is part of an appropriations expense that was passed in 1992, and since then that program has been extended 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 procedure takes a good while to develop a project and afterwards to obtain the capitalists accepted. And they do not desire their money streaming with up until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the development of jobs.

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I want to make clear that the Regional Facility Program is not the like here the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 law that is part of the code. It just is a reality that a lot of the regional centers that are pooling investments have actually set those instead of high unemployment or in country areas where half- million-dollar investments are enabled, and that makes sense.