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The program is placed in an extremely strange and non-helpful governmental area for the excitement of worldwide financial investment in the United States. We are providing away also much for also little of a financial investment.


The local centers, with their half-million schemes, essentially damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with producing organization entities, not easy investments. It must be about creating genuine tasks, not specify calculations concerning the indirect creation of work, which is now component of the legislation.


Perhaps 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 naturally awkward, and the program is too loaded with middlemen, both public and personal. The program has greater than its share of scandals, which I will certainly enter later on if anybody is interested.


This is an agency that likes to state yes to candidates, yet as the table in my statement shows, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and completely reason

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Seventh, in this program visas most likely to people who might not obtain them any various other method and to individuals whose planned financial investment is in fact less, according to the Federal Book, than the typical mean web worth of all American families in 2007. Let me broaden on one of my observations.


My price quote based upon the investors' copyright applications filed 2 years after the initial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not supply the type of information that we might make use of on this.


For every $100 of boosted international financial investment that year, the EB program added one dime. Under a far more unsteady analytical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thanks for listening to me. I anticipate your remarks and concerns. [The ready declaration of David North looks like a submission for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique recommended you read group.




Divine functioned as Principal Counsel of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program in private method. He was elected, as I comprehend, vice head of state of the Association to directory Invest in U.S.A., the nationwide sector organization of regional.


Divine, we are happy to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were made use of, 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. Particularly as USCIS, the agency that manages the program, has actually been making the policies more clear and the processes more rational and clear for the individuals that are arranging investments and for the investors that are investing, more people have actually been willing and able to put effort and money into the procedure to discover good jobs and create them, and afterwards a lot more capitalists have actually wanted to spend their cash and take the risk and make use of the cash to create the work that is the factor of the program.

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These tasks review do not linger for life, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The regional center component of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes a good while to function up a job and afterwards to get the investors authorized. And they do not want their cash moving with until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of tasks.

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I would love to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 law that becomes part of the code. It just is a truth that most of the local centers that are pooling financial investments have set those instead of high unemployment or in rural areas where half- million-dollar financial investments are allowed, and that makes good sense.