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The program is placed in a very weird and non-helpful administrative area for the excitement of international investment in the United States. We are providing away also much for too small of an investment.


The local centers, with their half-million plans, basically damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should have to do with producing organization entities, not passive financial investments. It needs to be about developing genuine jobs, not elaborate calculations regarding the indirect development of jobs, which is currently part of the legislation.


Possibly that is just one of the factors why it has failed every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too filled with intermediaries, both public and personal. The program has even more than its share of scandals, which I will certainly enter into later on if any person is interested.


This is a firm that loves to say yes to candidates, yet as the table in my statement shows, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that nobody has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely factor

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Seventh, in this program visas go to individuals who could not get them any kind of various other means and to individuals whose scheduled financial investment is really much less, according to the Federal Book, than the ordinary mean net well worth of all American households in 2007. Allow me expand on among my monitorings.


My quote based on the financiers' permit applications submitted 2 years after the first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not give the type of data that we might make use of on this.


So for each $100 of increased international investment that year, the EB program added one penny. Under a a lot more wobbly analytical base, the first applications of potential immigrant financiers, USCIS is informing journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for listening to me. I expect your remarks and inquiries. [The ready declaration of David North appears as a submission for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration technique team.




Divine worked as Chief Advise of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program in personal method. He was elected, as I understand, vice president of the Organization to Buy U.S.A., the nationwide industry organization of local facilities.


Divine, we are thrilled to have you web here. Please go in advance, sir. 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, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and getting towards that. Particularly as USCIS, the company that supervises the program, has actually been making the rules clearer and the procedures much more reasonable and clear for individuals who are organizing investments and for the financiers that are spending, even more individuals have actually wanted and able to put effort and cash into the process to discover excellent jobs and develop them, and after that more investors have actually agreed to spend their cash and take the risk and make use of the cash to develop the work that is the factor 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 process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, actually, click here to find out more they prepare to reject applications that are not qualifying. And they do so, as was discussed


The local center part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and considering that then that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes an excellent while to develop a job and afterwards to obtain the capitalists accepted. And they do not desire their money moving through till they have actually been approved. And the specter of the expiry of this Regional Center Program in September is currently dissuading the growth of jobs.

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I would such as to make clear that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 legislation that belongs to the code. It just is a fact that a lot of the regional facilities that are pooling investments have set those instead of my blog high unemployment or in country locations where half- million-dollar financial investments are permitted, and that makes sense.