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The program is put in an extremely weird and non-helpful bureaucratic location for the stimulation of international investment in the United States. We are offering away too much for too tiny of an investment.


The local centers, with their half-million schemes, basically damaged the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must have to do with producing business entities, not easy financial investments. It needs to be about developing genuine work, not clarify calculations concerning the indirect development of tasks, which is now component of the legislation.


Probably that is one of the reasons it has fallen short year after year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of intermediaries, both public and private. The program has greater than its share of rumors, which I will enter later if any person is interested.


This is a company that enjoys to say yes to candidates, but as the table in my statement reveals, USCIS officers have a lot extra problem with EB-5 applications than others. I believe that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high prices of inner denials in this program and permanently factor

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Seventh, in this program visas go to people that might not obtain them differently and to individuals whose scheduled investment is in fact 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 estimate based on the investors' permit applications submitted 2 years after the initial financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not provide the kind of information that we can utilize on this.


So for every $100 of raised international financial investment that year, the EB program added one cent. Under a a lot more unsteady statistical base, the first applications of prospective immigrant capitalists, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I expect your comments and inquiries. [The prepared statement of David North shows up as an entry 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 method team.




Divine offered as Principal Advise of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Director. He has functioned extensively with the EB-5 program in private practice. He was chosen, as I comprehend, vice president of the Organization to Invest in U.S.A., the national sector association of local.


Divine, we are happy to have you below. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, 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 migration every year to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the company that oversees the program, has been making the policies clearer and the processes extra logical and clear for the people that are organizing investments and for the capitalists that are investing, more individuals have actually been prepared and able to place effort and money right into the process to find good jobs and create them, and then a lot more investors have been prepared to invest their money and take the danger and use the cash to develop the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS comprehends that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, actually, they are ready to deny applications that are not qualifying. And they do so, as was mentioned


The local center component of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes a great while to function up a project and after that to get the financiers accepted. And they do not want their money flowing with till they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is currently discouraging the advancement of projects.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 regulation that belongs to the code. It simply is a reality that click here most of the regional facilities that are merging financial investments have established those instead of high unemployment or in backwoods where half- million-dollar financial investments are allowed, and that makes sense.