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The program is placed in an extremely weird and non-helpful governmental area for the stimulation of international investment in the United States. We are providing away as well much for as well little of an investment.

The local facilities, with their half-million schemes, essentially undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to be concerning creating company entities, not easy investments. It must have to do with developing real tasks, not clarify calculations regarding the indirect development of tasks, which is now component of the regulation.


Maybe that is one of the reasons that it has actually fallen short every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will certainly enter later on if anyone is interested.


This is a company that likes to say yes to candidates, however as the table in my statement shows, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high prices of interior rejections in this program and for excellent reason

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Seventh, in this program visas go to people that could not get them otherwise and to individuals whose organized financial investment is really much less, according to the Federal Get, than the average mean internet well worth of all American family members in 2007. Allow me broaden on one of my observations.


My estimate based upon the financiers' permit applications submitted 2 years after the first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not provide the type of information that we could utilize on this.


For every $100 of enhanced foreign investment that year, the EB program added one cent. Under a far more shaky analytical base, the first applications of would-be immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. I anticipate your comments and questions. [The prepared declaration of David North appears as an entry for the document.] 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 practice team.

Divine worked as Principal Guidance of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and after that Acting Deputy Director. He has functioned extensively with the EB-5 program in personal practice. He was elected, as I comprehend, vice president of the Organization to Invest in U.S.A., the national sector organization of regional.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Home Page Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 slots were used, 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 toward that. Especially as USCIS, the company that looks after the program, has actually been making the regulations clearer and the processes more logical and clear for individuals who are organizing investments and for the investors that are spending, even more individuals have actually agreed and able to place initiative and cash right into the process to locate great tasks and develop them, and afterwards more financiers have actually been eager to spend their money and take the risk and utilize the cash to develop the jobs that is the point of the program.

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These tasks do not linger forever, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, in fact, they are prepared to deny applications that are not qualifying. And they do so, as was pointed out

The regional facility component of the program is not. It belongs to an appropriations bill that was established in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a good while to function up a job and after that to get the capitalists approved. And they do not want their this post cash streaming through until they my response have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the advancement of projects.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 law that is component of the code. It just is a fact that the majority of the regional facilities that are merging financial investments have actually set those instead of high unemployment or in country locations where fifty percent- million-dollar investments are enabled, which makes good sense.