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The program is placed in a very strange and non-helpful administrative location for the excitement of worldwide investment in the United States. Second, its range is all wrong. We are distributing excessive for as well small of a financial investment. Better, increasing venture resources half a million dollars a tranche is, to claim the least, ineffective.


The regional centers, with their half-million systems, basically undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to have to do with developing company entities, not easy financial investments. It needs to be about creating genuine tasks, not clarify calculations regarding the indirect production of jobs, which is currently component of the regulations.


Possibly that is just one of the reasons that it has actually stopped working time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also full of middlemen, both public and exclusive. The program has more than its share of scandals, which I will enter later on if anyone is interested.


This is an agency that loves to state yes to candidates, however as the table in my statement reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals who might not get them otherwise and to people whose scheduled financial investment is actually less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me expand on one of my monitorings.


My estimate based upon the investors' permit applications filed 2 years after the initial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not supply the kind of data that we might make use of on this.


So for every single $100 of enhanced foreign financial investment that year, the EB program added one penny. Under a a lot more unsteady analytical base, the preliminary applications of prospective immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I expect your comments and concerns. [The prepared declaration of David North shows up as a submission 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 technique team.




Divine functioned as Principal Counsel of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Supervisor. He has actually worked thoroughly with the EB-5 program in private practice. He was elected, as I understand, vice president of the Association to Invest in U.S.A., the nationwide sector association of regional.


Divine, we are happy to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN 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 used, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is expanding and obtaining toward that. Particularly as USCIS, the company that looks after the program, has been making the guidelines clearer and description the procedures extra rational and clear for individuals that are arranging financial investments and for the capitalists that are spending, even more people have been ready and able to place effort and money right into the process to discover excellent projects and develop them, and after that more investors have agreed to invest their money and take the risk and use the cash to create the jobs that is the factor of the program.

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These jobs do not wait around for life, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, in reality, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The regional facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and given that then that program click for info has actually been prolonged five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to work up a task and after that to get the investors accepted. And they do not want their cash moving through until they have been accepted. And the specter of the expiration of this Regional Center Program in September is already dissuading the advancement of jobs.

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I would like to make clear that the click here to read Regional Facility 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 the code. It just is a reality that a lot of the regional facilities that are pooling financial investments have actually established those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are allowed, which makes sense.