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The program is put in a very strange and non-helpful bureaucratic area for the excitement of worldwide financial investment in the United States. We are offering away as well much for as well small of a financial investment.


The local facilities, with their half-million systems, essentially undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to be regarding producing company entities, not easy financial investments. It must be about creating genuine tasks, not specify estimations concerning the indirect production of tasks, which is currently part of the regulations.


Possibly that is among the reasons it has actually failed time after time to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter later if anybody is interested.


This is an agency that likes to say yes to applicants, yet as the table in my testimony reveals, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that no one has truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever factor

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Seventh, in this program visas most likely to individuals who could not get them any kind of various other method and to individuals whose organized financial investment is actually much less, according to the Federal Book, than the ordinary mean net well worth of all American families in 2007. Let me broaden on one of my observations.


My price quote based on the financiers' permit applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not give the sort of information that we might use on this.


So for each $100 of enhanced foreign investment that year, the EB program contributed one cent. Under a much extra shaky analytical base, the first applications of potential immigrant financiers, USCIS is informing reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for listening to me. I anticipate your remarks and concerns. [The ready statement of David North appears as a submission for the document.] Chairman Leahy. i thought about this Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method team.




Divine worked as Chief Counsel of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state of the Association to Buy USA, the national market association of regional facilities.


Divine, we are delighted to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, 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 certainly be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is expanding and getting toward that. Especially as USCIS, the company that supervises the program, has been making view website the rules clearer and the procedures more rational and clear for the people who are organizing investments and for the investors who are investing, more individuals have actually been willing and able to put initiative and cash right into the procedure to discover good projects and develop them, and after that more investors have agreed to invest their cash and take the threat and make use of the cash to develop the work that is the factor of the program.

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These tasks do not wait about forever, and USCIS recognizes that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The local facility component of the program is not. It is part of an appropriations expense that was passed in 1992, and considering that then that program has actually been extended five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a great while to work up a project and afterwards to obtain the capitalists approved. And they do not desire their cash streaming via until they have been authorized. And the specter of the expiry of this Regional Center Program in September is already dissuading the development of jobs.

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I would certainly like to clarify that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It just is a reality that the majority of the local centers that are pooling investments have set those in places of Find Out More high joblessness or in backwoods where half- million-dollar investments are enabled, which makes good sense.