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The program is put in a really weird and non-helpful bureaucratic location for the excitement of worldwide investment in the United States. We are giving away as well much for too little of a financial investment.


The local centers, with their half-million systems, essentially undercut the extra practical 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 producing service entities, not easy financial investments. It must have to do with producing genuine work, not elaborate estimations regarding the indirect production of jobs, which is currently part of the regulations.


Perhaps that is just one of the reasons why it has actually failed time after time to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will enter into later if anyone is interested.


This is a firm that enjoys to state yes to candidates, but as the table in my testament reveals, USCIS police officers have much a lot more problem with EB-5 applications than others. I think that is something that nobody has actually actually spoken about much. EB5 Regional Center Program. There are high rates of internal denials in this program and completely factor

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Seventh, in this program visas most likely to individuals that might not obtain them otherwise and to individuals whose organized investment is actually much less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Allow me broaden on one of my observations.


My price quote based upon the financiers' permit applications submitted 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not offer the type of information that we might use on this.


For every $100 of raised foreign financial investment that year, the EB program added one penny. Under a a lot more shaky statistical base, the first applications of would-be immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and concerns. [The ready declaration of David North appears as a submission for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique team.




Divine offered as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program secretive practice. He was chosen, as I comprehend, vice president of the Organization to Invest in USA, the nationwide market organization of local facilities.


STATEMENT 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 a lot of, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the company that looks after the program, has been making the regulations more clear and the processes a lot more logical and clear for individuals that are arranging financial investments and for the capitalists who are spending, more individuals have agreed and able to place initiative and cash right into the process to discover great tasks and create them, and after that extra financiers have actually agreed to spend their cash and take the threat and use the cash to produce the work that is the point of the program.

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These projects do not wait around forever, and USCIS understands that and are trying 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 reality, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional facility part of the program is not. It is component of an appropriations bill that was passed in 1992, and ever since that program has actually been extended 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 day of expiration in September.


The procedure takes a great while to develop a job and after that to obtain the capitalists approved. And they do not desire their cash streaming through till they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already discouraging the advancement of jobs.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 legislation here that is part of the code. It just is a reality that the majority of the regional centers that are pooling investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, and that makes sense.