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The program is put in an extremely strange and non-helpful bureaucratic area for the excitement of international financial investment in the United States. Second, its scale is all incorrect. We are distributing excessive for too little of an investment. Better, elevating equity capital half a million bucks a tranche is, to claim the least, inefficient.


The regional centers, with their half-million systems, essentially damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should have to do with creating company entities, not passive investments. It needs to be concerning developing genuine jobs, not elaborate calculations about the indirect creation of tasks, which is now component of the legislation.


Maybe that is just one of the reasons why it has actually failed every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also filled with middlemen, both public and private. The program has even more than its share of scandals, which I will get right into later if any person is interested.


This is an agency that enjoys to state yes to candidates, however as the table in my testament shows, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and forever reason

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Seventh, in this program visas go to individuals that might not obtain them any various other way and to people whose organized investment is actually much less, according to the Federal Get, than the typical mean net worth of all American family members in 2007. Allow me expand on one of my observations.


My price quote based on the investors' permit applications submitted 2 years after the very first investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not offer the type of information that we might utilize on this.


So for every $100 of boosted foreign investment that year, the EB program added one cent. Under a much a lot more unsteady 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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Thanks for paying attention to me. I expect your comments and inquiries. [The ready declaration of David North looks like an entry for the record.] 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 team.




Divine acted as Chief Advise of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Deputy Supervisor. He has functioned extensively with the EB-5 program secretive method. He was elected, as I understand, vice president of the Association to Buy USA, the national sector association of local centers.


Divine, we are delighted to have you right here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN check this site out THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were used, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is growing and obtaining toward that. Specifically as USCIS, the agency that looks after the program, has actually been making the policies clearer and the processes a lot more reasonable and clear for individuals who are organizing investments and for the capitalists that are investing, even more people have actually agreed and able to place effort and money right into the procedure to discover excellent jobs and develop them, and after that extra financiers have been eager to spend their cash and take the risk and utilize the cash to develop the work that is the point of the program.

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These projects do not wait about for life, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, in truth, they prepare to deny applications that are not qualifying. And they do so, as was stated


The local center component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and given that then that program has actually been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes a great while to work up a job and after that to obtain the capitalists approved. And they do not desire their money moving through till they have actually been authorized. And the read this specter of the expiration of this Regional Facility Program in September is currently dissuading the development of jobs.

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I would like to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or he has a good point a million is a function of the routine EB-5 regulation that is component of the code. It just is a reality that the majority of the local facilities that are pooling investments have established those in areas of high unemployment or in country areas where fifty percent- million-dollar investments are allowed, and that makes good sense.