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The program is placed in a very weird and non-helpful governmental place for the stimulation of worldwide investment in the United States. We are giving away too much for too small of an investment.


The regional centers, with their half-million plans, basically damaged the a lot more 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 be regarding developing organization entities, not easy investments. It needs to have to do with developing real tasks, not elaborate computations about the indirect production of jobs, which is now component of the regulation.


Possibly that is just one of the reasons that it has stopped working year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with middlemen, both public and personal. The program has even more than its share of scandals, which I will get involved in later if anyone is interested.


This is a company that enjoys to state yes to candidates, but as the table in my statement reveals, USCIS officers have a lot more problem with EB-5 applications than others. I believe that is something that nobody has really spoken around much. EB5 Regional Center Program. There are high rates of interior denials in this program and completely reason

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Seventh, in this program visas most likely to people that could not get them otherwise and to people whose scheduled financial investment is in fact much less, according to the Federal Get, than the average mean total assets of all American families in 2007. Allow me broaden on one of my observations.


My price quote based on the investors' permit applications filed 2 years after the first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not offer the kind of information that we can make use of on this.


So for each $100 of raised foreign financial investment that year, the EB program added one penny. Under a much extra unsteady statistical base, the first applications of prospective immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I eagerly anticipate your comments and concerns. [The prepared statement of David North appears as an entry for the document.] 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 method team.




Divine acted as Chief Counsel of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program in private technique. He was elected, as I recognize, vice president of the Association to Invest in U.S.A., the national sector association of local facilities.


Divine, we are thrilled to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding and getting towards that. Specifically as USCIS, the agency that looks after the program, has actually been making the guidelines clearer and the processes extra rational and clear for individuals that are arranging financial investments and for the capitalists that are click over here spending, more individuals have been willing and able to place initiative and cash into the process to find excellent tasks and develop them, and after that much more financiers have actually wanted to spend their money and take the threat and utilize the cash to create the work that is the factor of the program.

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These tasks do not wait around forever, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, actually, they are prepared to refute applications that are not certifying. And they do so, as was pointed out


The regional center part of the program is not. It is part of an appropriations expense that was enacted in 1992, and given that then that program has been extended 5 times for 19 years. It is time for it to be irreversible, find out and it requires to be done now and not nearer to the day of expiration in September.


The process takes a great while to work up a job and after that to obtain the financiers authorized. And they do not want their money flowing through until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the development of projects.

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I would love to clear up that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that becomes part of look at here the code. It just is a fact that a lot of the regional centers that are pooling investments have actually established those in locations of high unemployment or in backwoods where half- million-dollar financial investments are permitted, which makes good sense.