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The program is put in a very strange and non-helpful governmental location for the stimulation of international financial investment in the United States. We are giving away too much for also tiny of an investment.


The local facilities, with their half-million systems, essentially damaged the more reasonable 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 creating service entities, not passive financial investments. It ought to have to do with creating actual jobs, not clarify estimations about the indirect development of tasks, which is currently part of the legislation.


Probably that is one of the factors why it has stopped working year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well filled with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will get involved in later if anyone is interested.


This is a company that enjoys to claim yes to candidates, but as the table in my statement shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has really spoken around a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently reason

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Seventh, in this program visas go to people that can not obtain them differently and to individuals whose planned investment is actually much less, according to the Federal Reserve, than the ordinary mean web worth of all American households in 2007. Let me increase on one of my observations.


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


So for every single $100 of raised foreign investment that year, the EB program added one cent. Under a far more unsteady analytical base, the preliminary applications of would-be immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for listening to me. I anticipate your remarks and inquiries. [The ready statement of David North appears as a submission for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.




Divine served as Chief Counsel of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Supervisor. He has actually worked thoroughly with the EB-5 program in personal technique. He was elected, as I understand, vice president of the Association to Invest in U.S.A., the nationwide industry association of local facilities.


Divine, we are thrilled to have you here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Especially as USCIS, the agency that looks after the program, has actually been making the regulations clearer and the procedures extra logical and clear for the people that are organizing investments and for the investors that are investing, even more people have been willing and able to place effort and cash right into the procedure to discover good jobs and establish them, and after that website more investors have been willing to invest their cash and take the threat and utilize the cash to produce the work that is the factor of the program.

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These jobs do not wait about forever, and USCIS comprehends that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, as a matter of fact, they are all set to reject applications that are not certifying. And they do so, as was mentioned


The local facility part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and since then that program has been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes an excellent while to work up a job and after that to obtain the investors accepted. And they do not want their money streaming through till they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of projects.

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I want to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 regulation that belongs to the code. It simply is a truth that a lot of the local centers that are merging financial investments have set those instead of high joblessness or in country locations where half- million-dollar investments are permitted, and that makes sense.