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The program is placed in a very odd and non-helpful bureaucratic place for the stimulation of worldwide financial investment in the United States. We are offering away also much for too small of an investment.


The local facilities, with their half-million schemes, basically undercut the much more practical 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 creating service entities, not easy investments. It should have to do with creating real jobs, not specify estimations regarding the indirect production of work, which is currently part of the regulations.


Perhaps that is among the reasons that it has failed time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will obtain into later if any person is interested.


This is a firm that loves to say yes to applicants, but as the table in my testimony shows, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that no one has truly chatted around much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever reason

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Seventh, in this program visas go to people that can not obtain them differently and to people whose scheduled financial investment is really less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Let me broaden on one of my monitorings.


My estimate based on the financiers' permit applications filed 2 years after the first investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not give the sort of information that we might utilize on this.


For every $100 of boosted international investment that year, the EB program added one cent. Under a far more shaky statistical base, the first applications of would-be immigrant investors, USCIS is telling reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and concerns. [The ready declaration of David North looks like an entry for the record.] Chairman Leahy. Thank you. 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 immigration technique team.




Divine acted as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Supervisor. He has worked extensively with the EB-5 program in personal method. He was chosen, as I comprehend, vice president of the Organization to Buy U.S.A., the national market organization of local facilities.


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


At many, if all 10,000 ports were used, it would be 1 percent of the migration every year to the United States. It is not near that yet, yet it is growing and getting read more toward that. Especially as USCIS, the firm that oversees the program, has actually been making the rules clearer and the procedures more logical and clear for the people who are organizing investments and for the capitalists that are spending, even more people have actually been ready and able to put initiative and cash right into the procedure to discover good jobs and establish them, and after that more capitalists have wanted to spend their cash and take the risk and make use of the cash to produce the jobs that is the factor of the program.

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These jobs do not linger forever, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, as a matter of fact, they are ready to reject applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiry in September.


The process takes a good while to function up a task and after that to obtain the financiers accepted. And they do not desire their money streaming with till they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently dissuading the advancement of tasks.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 law that becomes part of the code. It simply is a truth that a lot of the local centers that are merging investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are allowed, and that makes good sense.