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First, the program is positioned in an extremely strange and non-helpful administrative location for the stimulation of international investment in the United States. Second, its scale is all incorrect. We are handing out too much for as well tiny of a financial investment. Better, elevating venture funding fifty percent a million bucks a tranche is, to claim the least, ineffective.


The local facilities, with their half-million systems, essentially undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to be about producing business entities, not passive investments. It must be about developing actual jobs, not elaborate computations regarding the indirect production of jobs, which is now part of the regulations.


Maybe that is among the factors why it has failed every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will certainly enter into later on if anyone is interested.


This is an agency that loves to state yes to candidates, yet as the table in my testament shows, USCIS policemans have far more difficulty with EB-5 applications than others. I assume that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and completely reason

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Seventh, in this program visas go to individuals that could not get them any various other method and to individuals whose planned financial investment is really less, according to the Federal Book, than the ordinary mean web well worth of all American family members in 2007. Let me increase on among my observations.


My price quote based upon the capitalists' environment-friendly card applications submitted 2 years after the very first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the sort of information that we can utilize on this.


So for each $100 of raised international financial investment that year, the EB program added one penny. Under a a lot more wobbly analytical base, the initial applications of would-be immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 click for info billion. Allow us approve that.

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Thanks for listening to me. I anticipate your remarks and inquiries. [The prepared declaration of David North appears as a submission 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 acted as Principal Guidance of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Performing Deputy Supervisor. He has worked extensively with the EB-5 program in personal method. He was chosen, as I comprehend, vice president of the Organization to Buy U.S.A., the national market organization of regional centers.


Divine, we are happy to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the immigration each year to the USA. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the agency that manages the program, has been making the guidelines clearer and the processes a lot more reasonable and clear read more for the individuals who are organizing 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 process to find good tasks and develop them, and then a lot more financiers have actually wanted to invest their cash and take the threat and use the cash to develop the work that is the point of the program.

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These jobs do not linger for life, and USCIS recognizes that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, actually, they prepare to reject applications that are not certifying. And they do so, as was stated


The regional facility component of the program is not. It is part of an appropriations bill that was passed 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 needs to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to work up a task and afterwards to get the financiers accepted. And they do not want their money streaming via till they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already preventing the development of jobs.

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I would certainly like to clarify that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 law that is component of the code. It simply is a reality that most of the regional facilities that are pooling investments have actually set those in areas of high joblessness or my explanation in rural locations where fifty percent- million-dollar financial investments are allowed, and that makes good sense.