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The program is placed in an extremely strange and non-helpful administrative place for the excitement of international investment in the United States. We are giving away also much for too little of an investment.


The local centers, with their half-million schemes, essentially damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to be about developing business entities, not easy investments. It should be concerning creating actual jobs, not specify computations concerning the indirect development of work, which is now component of the regulations.


Maybe that is one of the factors why it has actually failed time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too loaded with intermediaries, both public and personal. The program has even more than its share of detractions, which I will certainly get involved in later on if any person is interested.


This is an agency that loves to say yes to applicants, yet as the table in my testament reveals, USCIS policemans have much a lot more problem with EB-5 applications than others. I think that is something that no one has truly spoken around a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently reason

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Seventh, in this program visas most likely to people who could not get them differently and to people whose planned investment is actually much less, according to the Federal Book, than the average mean web worth of all American families in 2007. Allow me expand on among my observations.


My quote based upon the investors' permit applications filed 2 years after the first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not provide the kind of data that we can use on this.


For every $100 of raised international investment that year, the EB program contributed one dime. Under a much more wobbly analytical base, the initial applications of prospective immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and questions. [The prepared statement of David North shows up as an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method group.




Divine served as Principal Advice of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and more info after that Performing Deputy Director. He has actually worked extensively with the EB-5 program in personal method. He was chosen, as I understand, vice president of the Organization to Invest in U.S.A., the national industry organization of local centers.


Divine, we are delighted to have you below. Please go on, sir. DECLARATION 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. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and obtaining toward that. Specifically as USCIS, the agency that manages the program, has been making the policies more clear and the processes a lot more logical and clear for individuals that are organizing financial investments and for the financiers who are investing, more people have actually wanted and able to put effort and cash into the procedure to locate great projects and create them, and afterwards more capitalists have agreed to spend their cash and take the threat and make use of the cash to develop the work that is the factor of the program.

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These projects do not wait around forever, and USCIS recognizes that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was mentioned


The regional center component of the program is not. It belongs to an appropriations expense that was enacted in 1992, and because then that program has been expanded 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to develop a project and after that to get the investors approved. And they do not want their cash flowing with till they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the development of tasks.

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I want to clear up that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 legislation that becomes part of the code. It simply is a fact that a lot of the local facilities that are merging investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, and that makes good sense.