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The program is positioned in a very odd and non-helpful governmental place for the stimulation of international financial investment in the United States. Second, its range is all wrong. We are handing out excessive for also small of an investment. Additionally, increasing financial backing half a million bucks a tranche is, to say the least, inefficient.


The local facilities, with their half-million plans, essentially damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to have to do with creating business entities, not easy investments. It should have to do with developing real jobs, not clarify computations concerning the indirect production of tasks, which is currently component of the regulations.


Probably that is among the reasons that it has actually failed every year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with intermediaries, both public and personal. The program has greater than its share of rumors, which I will get into later on if anyone is interested.


This is a firm that loves to state yes to applicants, yet as the table in my statement reveals, USCIS officers have much extra problem with EB-5 applications than others. I think that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and forever factor

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Seventh, in this program visas go to people that could not get them otherwise and to people whose scheduled financial investment is in fact less, according to the Federal Book, than the typical mean net well worth of all American family members in 2007. Allow me increase on one of my observations.


My price quote based upon the investors' permit applications filed 2 years after the initial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not provide the sort of data that we can utilize on this.


For every $100 of boosted international financial investment that year, the EB program contributed one cent. Under a a lot more wobbly statistical base, the first applications of would-be immigrant investors, USCIS is telling reporters 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 remarks and questions. [The ready statement of David North appears as an entry for the document.] Chairman Leahy. Thank you. Our following 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 group.




Divine acted as Principal Advise of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in private practice. He was chosen, as I comprehend, vice president of the Association to Spend in United States, the nationwide sector organization of regional facilities.


Divine, we look these up are pleased to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were used, it would be 1 percent of the migration annually to the United States. It is not near that yet, however it is expanding and obtaining toward that. Especially as USCIS, the go to website firm that oversees the program, has actually been making the regulations more clear and the processes extra rational and clear for individuals who are arranging investments and for the capitalists that are investing, more individuals have wanted and able to place initiative and cash right into the process to locate good tasks and create them, and after that much more capitalists have actually agreed to invest their cash and take the danger and utilize the money to produce the tasks that is the factor of the program.

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These tasks do not wait around for life, and USCIS recognizes that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, in truth, they prepare to reject applications that are not certifying. And they do so, as was pointed out


The regional center part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to develop a job and after that to get the investors approved. other And they do not want their cash flowing via until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the advancement of jobs.

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I wish to clarify that the Regional Center Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that is component of the code. It just is a fact that most of the local facilities that are pooling financial investments have actually established those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes feeling.