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The program is positioned in an extremely strange and non-helpful governmental place for the excitement of international financial investment in the United States. We are offering away too much for also tiny of a financial investment.


The local centers, with their half-million systems, basically undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to be regarding producing service entities, not easy investments. It ought to be concerning creating genuine jobs, not specify computations concerning the indirect creation of jobs, which is now component of the regulations.


Probably that is just one of the factors why it has failed every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has even more than its share of rumors, which I will certainly get involved in later if anybody is interested.


This is an agency that loves to say yes to candidates, but as the table in my statement shows, USCIS officers have far more trouble with EB-5 applications than others. I think that is something that no one has actually chatted about much. EB5 Regional Center Program. There are high rates of internal denials in this program and for good reason

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Seventh, in this program visas go to people that could not obtain them otherwise and to individuals whose scheduled financial investment is really less, according to the Federal Book, than the ordinary mean net well worth of all American families in 2007. Let me expand on among my observations.


My price quote based upon the capitalists' permit applications filed 2 years after the initial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not give the type of information that we can make use of on this.


So for each $100 of raised foreign investment that year, the EB program added one dime. Under a a lot more shaky statistical base, the initial applications of prospective immigrant investors, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I anticipate your comments and inquiries. [The ready declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He check my source is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique group.




Divine acted as Principal Advice of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program in private practice. He was elected, as I understand, vice head of state of the Organization to Buy U.S.A., the nationwide sector organization of regional centers.


Divine, we are delighted to have you right here. Please proceed, sir. STATEMENT 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. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were made use of, it would be 1 percent of her latest blog the migration every year to sites the USA. It is not near that yet, however it is growing and getting toward that. Especially as USCIS, the agency that oversees the program, has been making the rules clearer and the procedures much more reasonable and clear for individuals who are organizing investments and for the investors who are spending, even more individuals have been eager and able to place effort and cash into the procedure to discover great jobs and develop them, and afterwards extra financiers have wanted to invest their money and take the risk and use the cash to develop the work that is the point of the program.

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These tasks do not linger for life, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, actually, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The regional facility part of the program is not. It is part of an appropriations costs that was passed in 1992, and since then that program has been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiry in September.


The process takes an excellent while to function up a project and after that to obtain the financiers accepted. And they do not desire their cash flowing through till they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the advancement of jobs.

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I want to clarify that the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It simply is a fact that most of the local facilities that are merging financial investments have set those instead of high joblessness or in rural areas where fifty percent- million-dollar investments are allowed, which makes good sense.