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The program is positioned in a very strange and non-helpful administrative area for the stimulation of international investment in the United States. We are providing away as well much for also small of an investment.


The regional centers, with their half-million systems, essentially undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with creating organization entities, not passive investments. It needs to be regarding developing genuine jobs, not specify computations about the indirect production of jobs, which is currently part of the regulation.


Possibly that is just one of the reasons that it has failed year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of middlemen, both public and private. The program has more than its share of scandals, which I will get involved in later on if anyone is interested.


This is an agency that likes to say yes to candidates, yet as the table in my statement reveals, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually chatted about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals that could not get them differently and to individuals whose planned financial investment is really less, according to the Federal Reserve, than the typical mean total assets of all American families in 2007. Let me broaden on among my monitorings.


My price quote based on the financiers' permit applications submitted 2 years after the initial financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not give the kind of data that we can use on this.


So for every $100 of increased international financial investment that year, the EB program added one cent. Under a a lot more shaky analytical base, the initial applications of would-be immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I look ahead to your remarks and inquiries. [The prepared statement of David North shows up as an entry for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice group.




Divine functioned as Chief Guidance of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and then Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program in exclusive technique. He was elected, as I recognize, vice head of state of the Association to Invest in USA, the nationwide useful content sector organization of regional.


Divine, we are pleased to have you right here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, 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. Thank you for having me.


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Specifically as USCIS, the company that supervises the program, has been making the policies more clear and the processes extra logical and clear for individuals who are arranging investments and for the financiers who are investing, even more people have been eager and able to put effort and cash into the procedure to find great projects and establish them, and after that more investors have wanted to spend their cash and take the danger and use the cash to develop the work that is the point of the program.

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These tasks do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, in fact, they are ready to refute applications click for more info that are not certifying. And they do so, as was discussed


The regional facility part of the program is not. It is part of an appropriations costs that was enacted in 1992, and because then that program has actually been expanded 5 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 expiry in September.


The procedure takes a great while to function up a project and after that to get the financiers approved. And they do not want their cash flowing with until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth of projects.

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I would certainly like to make clear that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of go to this website the regular EB-5 regulation that becomes part of the code. It just is a truth that most of the regional centers that are pooling financial investments have set those instead of high unemployment or in backwoods where half- million-dollar investments are enabled, and that makes sense.