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The program is placed in a very weird and non-helpful governmental location for the stimulation of global investment in the United States. Second, its range is all wrong. We are providing away also much for too little of an investment. Further, elevating financial backing half a million dollars a tranche is, to claim the least, inefficient.


The local facilities, with their half-million schemes, essentially damaged the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, need to be regarding developing company entities, not passive financial investments. It needs to be regarding developing real work, not elaborate computations regarding the indirect development of tasks, which is now component of the regulations.


Probably that is among the reasons that it has failed every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also full of intermediaries, both public and private. The program has even more than its share of detractions, which I will certainly enter into later if anybody is interested.


This is a firm that likes to claim yes to applicants, yet as the table in my testimony reveals, USCIS officers have far more trouble with EB-5 applications than others. I believe that is something that no one has actually actually discussed a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever reason

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Seventh, in this program visas go to people who can not get them differently and to individuals whose organized investment is in fact much less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Allow me broaden on one of my observations.


My price quote based on the investors' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not provide the type of data that we could utilize on this.


For every $100 of boosted international financial investment that year, the EB program contributed one dime. Under a far more wobbly analytical base, the initial applications of would-be immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for listening to me. I expect your remarks and concerns. [The ready declaration of David North shows up as an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method team.




Divine acted as Principal Guidance of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Performing Deputy Director. He has worked thoroughly with the EB-5 program secretive technique. He was elected, as I comprehend, vice head of state of the Organization to Invest in U.S.A., the nationwide sector association of regional.


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


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, but it is expanding and getting toward that. Especially as USCIS, the agency that manages the program, has actually been making the regulations clearer and the processes a lot more sensible and clear for the people that are organizing Get the facts investments and for the investors who are investing, even more people have actually wanted and able to put effort and cash right into the procedure to discover good projects and establish them, and afterwards much more investors have been willing to spend their money and take the risk and use the cash to produce the tasks 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 up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, as a matter read more of fact, they are prepared to deny applications that are not certifying. And they do so, as was pointed out


The regional facility component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and because then 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 now and not nearer to the click here for more info date of expiration in September.


The process takes a great while to function up a task and after that to obtain the financiers authorized. And they do not desire their money flowing with till they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is currently discouraging the development of projects.

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I would love to make clear 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 law that is component of the code. It simply is a reality that many of the regional facilities that are pooling financial investments have actually established those instead of high joblessness or in country areas where fifty percent- million-dollar financial investments are enabled, and that makes feeling.