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The program is put in a really strange and non-helpful bureaucratic area for the excitement of international financial investment in the United States. We are offering away also much for too tiny of a financial investment.


The regional centers, with their half-million plans, basically undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should have to do with creating service entities, not passive financial investments. It must be regarding creating real work, not specify computations about the indirect creation of jobs, which is now part of the regulations.


Probably that is just one of the reasons that it has fallen short every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too full of intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will certainly enter later on if anybody is interested.


This is a company that likes to claim yes to applicants, but as the table in my statement shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I think that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely reason

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Seventh, in this program visas most likely to people that might not get them any kind of various other method and to people whose organized financial investment is really less, according to the Federal Get, than the average mean total assets of all American households in 2007. Allow me increase on among my observations.


My estimate based upon the investors' permit applications filed 2 years after the first financial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not supply the type of data that we can utilize on this.


So for every single $100 of boosted foreign investment that year, the EB program added one dime. Under a much extra wobbly analytical base, the preliminary applications of would-be immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thanks for listening to me. I expect your comments and questions. [The prepared declaration of David North appears as a submission for the record.] Chairman Leahy. Thank you. Our next 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 Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program in exclusive technique. He was elected, as I comprehend, vice head of state of the Organization to Buy United States, the nationwide market association of local centers.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and straight from the source others.


At many, if all 10,000 ports 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 expanding and obtaining toward that. Specifically as USCIS, other the company that manages the program, has actually been making the policies more clear and the procedures extra rational and clear for individuals that are arranging financial investments and for the financiers that are investing, more individuals have actually agreed and able to put effort and cash into the procedure to discover good jobs and develop them, and then more financiers have actually wanted to invest their cash and take the threat and make use of the cash to develop the jobs that is the factor of the program.

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These jobs do not wait around forever, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, actually, they are ready to refute applications that are not certifying. And they do so, as was pointed out


The regional facility component of the program is not. It becomes part of an appropriations costs 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 requires to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to develop a project and afterwards to get the investors authorized. And they do not want their cash moving with till they have been approved. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the growth of projects.

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I would certainly like to clear up that the Regional Center Program is not the exact same as the you can try here half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 regulation that is part of the code. It just is a reality that the majority of the regional centers that are pooling investments have established those instead of high joblessness or in backwoods where half- million-dollar investments are permitted, which makes sense.