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The program is placed in a really odd and non-helpful administrative place for the excitement of worldwide investment in the United States. Second, its range is all incorrect. We are handing out too much for also small of a financial investment. Better, elevating financial backing fifty percent a million dollars a tranche is, to state the least, ineffective.


The local centers, with their half-million plans, essentially damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to be about developing service entities, not passive investments. It needs to be regarding producing real work, not clarify calculations regarding the indirect creation of jobs, which is now part of the regulation.


Possibly that is one of the reasons that it has actually fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with middlemen, both public and private. The program has even more than its share of detractions, which I will enter into later if anybody is interested.


This is an agency that likes to say yes to candidates, however as the table in my statement reveals, USCIS policemans have a lot more problem 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 inner denials in this program and for excellent factor

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Seventh, in this program visas most likely to people who can not get them otherwise and to individuals whose organized financial investment is really much less, according to the Federal Book, than the typical mean web well worth of all American family members in 2007. Allow me increase on one of my observations.


My estimate based on the capitalists' permit applications filed 2 years after the first investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not offer 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 much extra shaky statistical base, the initial applications of prospective immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for listening to me. I expect your comments and concerns. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is find out this here an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method team.




Divine functioned as Chief Advice of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and then Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Association to Invest in USA, the national industry organization of local centers.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is expanding and getting towards that. Especially as USCIS, the company that supervises the program, has actually been making the policies clearer and the procedures more sensible and clear for the people that are arranging investments and for the investors that are investing, more people have actually agreed and able to place effort and cash into the process to find great projects and establish them, and afterwards much more investors have agreed to spend their money and take the danger and use the cash to create the jobs that is the point of the program.

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These tasks do not linger forever, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was discussed


The regional facility part of the program is not. It belongs to an appropriations bill that was established in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to develop a project and then to get the capitalists authorized. And they do not desire their money flowing with until they read this post here have been authorized. And the specter of the expiry of this Regional Center Program in September is currently discouraging the advancement of projects.

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I would like to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 regulation that belongs to the code. It simply is a fact that a lot of the local facilities that are pooling investments have set those instead of high click joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes good sense.