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The program is positioned in an extremely strange and non-helpful administrative area for the excitement of international investment in the United States. We are offering away as well much for too tiny of a financial investment.


The local centers, with their half-million schemes, essentially undercut 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, ought to have to do with producing organization entities, not easy investments. It must be about producing genuine tasks, not specify estimations concerning the indirect development of jobs, which is currently component of the legislation.


Maybe that is one of the reasons why it has stopped working every year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well filled up with middlemen, both public and private. The program has even more than its share of scandals, which I will certainly get involved in later if anyone is interested.


This is a firm that loves to state yes to applicants, yet as the table in my testament reveals, USCIS police officers have a lot more problem with EB-5 applications than others. I think that is something that no one has actually truly chatted about much. EB5 Regional Center Program. There are high prices of inner denials in this program and forever factor

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Seventh, in this program visas go to individuals who can not get them otherwise and to people whose organized financial investment is actually less, according to the Federal Book, than the average mean net well worth of all American families in 2007. Allow me broaden on one of my observations.


My price quote based upon the investors' eco-friendly card applications submitted 2 years after the first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not provide the kind of data that we could use on this.


For every $100 of increased international financial investment that year, the EB program added one dime. Under a much more unsteady analytical base, the preliminary applications of would-be immigrant investors, USCIS is telling reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thanks for listening to me. I eagerly anticipate your comments and concerns. [The prepared statement of David North shows up as an entry for the document.] Chairman Leahy. Thank you. 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 offered as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program in exclusive technique. He was elected, as I recognize, vice president of the Organization to Spend in U.S.A., the national industry organization of local facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 ports were used, it would certainly be 1 percent of the navigate to these guys immigration yearly to the USA. It is not near that yet, however it is growing and obtaining toward that. Especially as USCIS, the company that looks after the program, has actually been making the rules more clear and the processes much more logical and clear for the people check that that are arranging financial investments and for the capitalists who are spending, even more individuals have actually wanted and able to place effort and cash right into the procedure to discover good projects and create them, and after that extra financiers have actually wanted to spend their money and take the danger and make use of the cash to develop the tasks that is the factor of the program.

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These projects do not wait about for life, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding 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 component of an appropriations expense that was passed in 1992, and ever since that program has actually been prolonged five times for additional hints 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to develop a project and after that to get the investors approved. And they do not desire their cash streaming with up until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already preventing the development of tasks.

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I would certainly such as to make clear that the Regional Facility 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 normal EB-5 regulation that is component of the code. It just is a reality that a lot of the regional centers that are pooling financial investments have actually established those in places of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, and that makes feeling.