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The program is put in an extremely strange and non-helpful bureaucratic location for the stimulation of global investment in the United States. We are providing away as well much for too little of an investment.


The local centers, with their half-million plans, basically undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, need to be about producing company entities, not easy financial investments. It needs to be regarding producing real tasks, not clarify computations concerning the indirect creation of jobs, which is now component of the regulation.


Perhaps that is just one of the reasons that it has failed time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with middlemen, both public and exclusive. The program has more than its share of scandals, which I will get involved in later on if anybody is interested.


This is a firm that loves to state yes to applicants, however as the table in my testament reveals, USCIS officers have a lot extra problem with EB-5 applications than others. I assume that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and for excellent factor

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Seventh, in this program visas go to people that can not get them differently and to people whose planned financial investment is really much less, according to the Federal Get, than the ordinary mean web worth of all American family members in 2007. Let me increase on one of my monitorings.


My quote based on the capitalists' eco-friendly card applications filed 2 years after the very first investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not provide the sort of data that we might utilize on this.


So for every $100 of increased foreign investment that year, the EB program added one cent. Under a a lot more shaky statistical base, the first applications of prospective immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for listening to me. I anticipate your comments and inquiries. [The ready declaration of David North looks like a submission for the record.] 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 migration practice team.




Divine worked as Chief Advise of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Performing get more info Deputy Director. He has functioned thoroughly with the EB-5 program secretive method. He was elected, as I recognize, vice president of the Association to Spend in USA, the national industry association of local.


STATEMENT OF ROBERT C. DIVINE, LAWYER, 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, Senator Grassley, and others.


At many, if all 10,000 ports were made use of, 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 getting toward that. Especially as USCIS, the company that looks after the program, has actually been making the rules clearer and the processes extra reasonable and clear for the individuals who are organizing investments and for the financiers who are spending, even more people have agreed and able to put effort and money right into the procedure to find good projects and develop them, and then more financiers have actually wanted to spend their money and take the risk and utilize the cash to develop the jobs that is the factor of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they are all set to refute applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It belongs to an appropriations expense that was passed in 1992, and considering that then that program has actually been expanded 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes an excellent while to develop a task and after that to obtain the capitalists approved. And they do not desire their cash moving via till they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of tasks.

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I would such as to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 regulation that is part of the code. It just is a reality that the majority of the regional centers that are pooling investments have established those in areas of high joblessness or in country areas where fifty percent- million-dollar financial investments are allowed, which makes good sense.