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Initially, the program is positioned in a very strange and non-helpful administrative location for the excitement of worldwide financial investment in the USA. Second, its scale is all wrong. We are handing out also much for too little of a financial investment. Even more, raising financial backing fifty percent a million dollars a tranche is, to state the least, ineffective.


The local centers, with their half-million systems, basically damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must have to do with creating service entities, not passive financial investments. It ought to have to do with developing real jobs, not specify computations concerning the indirect production of tasks, which is now part of the regulations.


Perhaps that is one of the reasons that it has failed year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of middlemen, both public and personal. The program has even more than its share of rumors, which I will certainly get involved in later on if any person is interested.


This is an agency that likes to claim yes to candidates, however as the table in my statement reveals, USCIS officers have far more trouble with EB-5 applications than others. I believe that is something that no one has really spoken about a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and completely factor

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


My estimate based on the financiers' environment-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not offer the kind of information that we might utilize on this.


For every $100 of enhanced international financial investment that year, the EB program added one cent. Under a far more wobbly analytical base, the first applications of potential immigrant financiers, USCIS is informing 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 listening to me. I expect your comments and questions. [The ready declaration of David North shows up as a submission for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head EB5 Regional Center Program of the firm's migration technique group.




Divine served as Chief Counsel of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has actually worked thoroughly with the EB-5 program in private technique. He was chosen, as I comprehend, vice president of the Organization to Spend in United States, the nationwide industry organization of local facilities.


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


At a lot of, if all 10,000 slots were utilized, it would be 1 percent of the immigration annually to the USA. It is not near that yet, but it is expanding and getting toward that. Especially as USCIS, the company that oversees the program, has actually been making the policies clearer and the processes more rational and clear for the people who are organizing investments and for the capitalists who are spending, even more people have actually agreed and able to place initiative and money right into the procedure to discover excellent projects and establish them, and after that much more capitalists have wanted to spend their money and take the danger and use the cash to produce the jobs that is the factor of the program.

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These tasks do not linger forever, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, as a matter of fact, they are prepared to reject applications that are not certifying. And they do so, as was discussed


The local center part of the program is not. It belongs to an appropriations bill that was established in 1992, and considering that then that program has been expanded five 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 expiry in September.


The process takes a good while to function up a job and afterwards to obtain the financiers accepted. And they do not want their cash moving through up until they have been approved. And the specter of the expiry of this Regional Facility Program in September is already preventing the development of tasks.

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I would love to clear up that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 legislation that belongs to the code. It just is a reality that a lot of the local centers that are merging investments have established those in areas of high unemployment or in rural locations where fifty percent- million-dollar investments are permitted, and that makes feeling.