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The program is positioned in a really strange and non-helpful governmental area for the excitement of global investment in the United States. We are offering away too much for also small of a financial investment.


The regional centers, with their half-million plans, essentially undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must have to do with producing business entities, not easy financial investments. It needs to have to do with producing actual tasks, not clarify calculations regarding the indirect creation of jobs, which is currently part of the legislation.


Possibly that is just one of the factors why it has actually stopped working year after year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of intermediaries, both public and private. The program has greater than its share of rumors, which I will enter later if anyone is interested.


This is a firm that likes to state yes to candidates, but as the table in my statement shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I think that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for great factor

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Seventh, in this program visas most likely to individuals that can not get them differently and to people whose organized financial investment is really much less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Allow me broaden on one of my observations.


My price quote based upon the capitalists' permit applications filed 2 years after the very first financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not offer the kind of information that we can make use of on this.


For every $100 of increased international financial investment that year, the EB program contributed one penny. Under a far more wobbly analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thanks for listening to me. I eagerly anticipate your remarks and questions. [The prepared statement of David North shows up as a submission for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method team.




Divine functioned as Principal Counsel of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in exclusive technique. He was chosen, as I recognize, vice president of the Association to Invest in U.S.A., the national industry association of local.


Divine, we are pleased to have you right 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 U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, but it is growing and obtaining toward that. Specifically as USCIS, the firm that looks after the program, has been making the rules more clear and the procedures a lot more sensible and clear for the people who are arranging financial investments and for the financiers who are investing, even more individuals have actually wanted and able to put initiative and money right into the process to find great jobs and develop them, and afterwards extra investors have been ready to spend their cash and take the danger and check here use the cash to produce the work that is the point of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, actually, they prepare to refute applications that are not certifying. And they do so, as was discussed


The regional facility component of the program is not. It belongs to an appropriations costs that was established in 1992, and since then that program has been extended five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a job and afterwards to obtain the capitalists accepted. And they do not desire their money streaming with till they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the development of tasks.

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I want to make clear that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 law that is component of the code. It just is a fact that most of the local facilities that are pooling financial investments have actually established those in places of high joblessness or in country areas where fifty percent- million-dollar financial investments are allowed, and that makes sense.