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The program is put in an extremely odd and non-helpful bureaucratic area for the stimulation of global investment in the United States. We are offering away also much for as well tiny of an investment.


The regional facilities, with their half-million systems, basically undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must be about creating company entities, not easy investments. It ought to have to do with producing real jobs, not clarify estimations regarding the indirect development of tasks, which is now part of the regulation.


Probably that is just one of the reasons that it has actually fallen short year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with intermediaries, both public and private. The program has even more than its share of scandals, which I will certainly obtain into later on if anybody is interested.


This is an agency that loves to state yes to applicants, yet as the table in my testament shows, USCIS policemans have far more trouble with EB-5 applications than others. I assume that is something that no one has actually really talked about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas most likely to people that can not get them otherwise and to individuals whose scheduled financial investment is really less, according to the Federal Book, than the ordinary mean internet worth of all American family members in 2007. Allow me expand on one of my monitorings.


My quote based on the investors' eco-friendly card applications filed 2 years after the very first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not offer the type of information that we might utilize on this.


For every $100 of raised foreign financial investment that year, the EB program added one cent. Under a far more wobbly analytical base, the initial applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I look onward to your remarks and questions. [The ready statement of David North looks like an entry 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 migration practice group.




Divine worked as click to find out more Chief Advise his response of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive practice. He was elected, as I understand, vice president of the Association to Purchase U.S.A., the nationwide market organization of regional centers.


Divine, we are pleased to have you below. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the firm that supervises the program, has been making the regulations more clear and the processes much more logical and clear for individuals that are arranging investments and for the capitalists that are investing, more individuals have actually been eager and able to put effort and cash into the process to locate great tasks and create them, and after that much more investors have actually been prepared to invest their money and take the threat and use the money to develop the tasks that is the factor of the program.

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These projects do not linger for life, and USCIS comprehends that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, in truth, they prepare to refute applications that are not qualifying. And they do so, as was discussed


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


The process takes an excellent while to function up a project and afterwards to get the capitalists approved. And they do not want their cash streaming via until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already discouraging the growth of jobs.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It simply is a truth that the majority of the local centers read the article that are pooling financial investments have set those instead of high unemployment or in rural areas where fifty percent- million-dollar investments are permitted, and that makes feeling.