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The program is put in a really weird and non-helpful administrative area for the excitement of international financial investment in the United States. We are providing away also much for as well small of a financial investment.


The local facilities, with their half-million plans, basically undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to be about developing company entities, not passive investments. It ought to have to do with developing actual tasks, not specify computations regarding the indirect creation of work, which is now component of the legislation.


Probably that is among the reasons why it has actually stopped working every year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too loaded with middlemen, both public and exclusive. The program has even more than its share of scandals, which I will certainly obtain into later if any person is interested.


This is an agency that enjoys to say yes to candidates, but as the table in my testament reveals, USCIS officers have far more difficulty with EB-5 applications than others. I assume that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever factor

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Seventh, in this program visas most likely to people who can not get them any type of various other way and to individuals whose planned investment is actually less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Let me broaden on among my observations.


My quote based on the capitalists' permit applications filed 2 years after the first financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not supply the type of data that we could utilize on this.


So for each $100 of boosted international financial investment that year, the EB program added one penny. Under a much more wobbly analytical base, the preliminary applications of prospective immigrant investors, USCIS is informing reporters that the level of investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thank you for listening to me. I eagerly anticipate your comments and concerns. [The ready statement of David North appears as a submission for the document.] Chairman Leahy. Thank you. 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 technique team.




Divine acted as Chief Advice of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has functioned extensively with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Organization to Spend in U.S.A., the national sector association of regional.


Divine, we are delighted to have you below. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank here are the findings you, Mr. Chairman, Legislator basics Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is growing and getting toward that. Specifically as USCIS, the agency that supervises the program, has actually been making the guidelines more clear and the processes much more sensible and clear for individuals that are arranging financial investments and for the capitalists that are spending, more individuals have actually been prepared and able to place effort and money into the process to locate great projects and create them, and after that extra investors have actually agreed to spend their cash and take the danger and make use of the money to produce the work that is the factor of the program.

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These tasks do not linger for life, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, actually, they are ready to refute applications that are not qualifying. And they do so, as was discussed


The regional facility part of the program is not. It becomes part of an appropriations expense see that was enacted in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to develop a project and after that to obtain the financiers accepted. And they do not want their cash streaming through up until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently dissuading the development of jobs.

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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 feature of the regular EB-5 law that becomes part of the code. It simply is a reality that most of the regional centers that are merging financial investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, and that makes good sense.