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The program is put in a really strange and non-helpful governmental place for the excitement of international financial investment in the United States. We are giving away too much for as well small of an investment.


The local facilities, with their half-million plans, basically damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to be about producing business entities, not passive financial investments. It must have to do with developing genuine tasks, not clarify computations concerning the indirect production of jobs, which is now part of the regulation.


Maybe that is one of the reasons that it has actually fallen short year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of intermediaries, both public and private. The program has even more than its share of detractions, which I will enter into later on if anyone is interested.


This is a company that loves to claim yes to applicants, but as the table in my testimony shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has actually spoken about a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and for excellent reason

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Seventh, in this program visas go to individuals that could not get them differently and to individuals whose scheduled investment is in fact less, according to the Federal Book, than the ordinary mean internet worth of all American family members in 2007. Allow me increase on among my observations.


My quote based upon the investors' permit applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not give the kind of information that we could use on this.


So for each $100 of boosted foreign investment that year, the EB program added one cent. Under a a lot more wobbly analytical base, the initial applications of potential immigrant investors, USCIS is telling reporters that the degree 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 paying attention to me. I look onward to your remarks and questions. [The prepared declaration of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice group.




Divine offered here are the findings as Chief Advise of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Supervisor. He has actually functioned extensively with the EB-5 reference program secretive technique. He was elected, as I comprehend, vice head of state of the Organization to Invest in U.S.A., the national market association of local.


Divine, we are delighted to have you right here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the firm that looks after the program, has actually been making the policies clearer and the processes much more sensible and clear for the people that are arranging financial investments and for the capitalists that are spending, even more people have actually agreed and able to place initiative and cash right into the process to discover good tasks and create them, and after that a lot more capitalists have actually been prepared to invest their cash and take the danger and use the cash to produce the work that is the factor of the program.

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These jobs learn this here now do not linger permanently, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, in reality, they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It is part of an appropriations expense that was enacted in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a task and afterwards to get the financiers approved. And they do not want their money flowing with up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already preventing the advancement of projects.

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I wish to clear up 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 regular EB-5 law that is component of the code. It just is a reality that a lot of the local facilities that are pooling financial investments have actually set those in places of high joblessness or in country locations where half- million-dollar investments are enabled, and that makes good sense.