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First, the program is placed in a very odd and non-helpful bureaucratic place for the excitement of global financial investment in the USA. Second, its scale is all wrong. We are distributing excessive for as well tiny of a financial investment. Additionally, increasing venture resources fifty percent a million dollars a tranche is, to state the least, inefficient.


The local facilities, with their half-million plans, essentially damaged the much 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 concerning developing organization entities, not passive investments. It ought to have to do with creating actual tasks, not specify calculations regarding the indirect development of jobs, which is currently component of the regulation.


Perhaps that is just one of the reasons it has stopped working time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with intermediaries, both public and exclusive. The program has more than its share of rumors, which I will certainly enter into later on if anyone is interested.


This is an agency that enjoys to state yes to applicants, yet as the table in my testimony shows, USCIS officers have far more trouble with EB-5 applications than others. I assume that is something that no one has actually truly spoken around much. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever factor

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Seventh, in this program visas go to people that can not get them otherwise and to people whose scheduled financial investment is really much less, according to the Federal Reserve, than the typical mean internet well worth of all American families in 2007. Let me increase on among my observations.


My quote based on the financiers' permit applications submitted 2 years after the very first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not offer the kind of data that we could make use of on this.


So for every $100 of boosted foreign financial investment that year, the EB program added one dime. Under a far more shaky statistical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for listening to me. I expect your comments and inquiries. [The ready declaration of David North shows up as a submission for the document.] Chairman Leahy. Thanks. 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 immigration practice team.




Divine worked as Principal Guidance of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program in private technique. He was chosen, as I recognize, vice head of state of the Organization to Spend in USA, the nationwide sector association of regional centers.


Divine, we are happy to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were used, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is expanding and getting towards that. Specifically as USCIS, the firm that looks after the program, has been making the guidelines more clear and the processes extra logical and clear for the people that are organizing investments and for the investors that are investing, even more people have actually wanted and able to place initiative and money into the procedure to find good jobs and establish them, and afterwards extra financiers have agreed to invest their money and take the threat and utilize the cash to produce the work that is the factor of the program.

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These tasks do not linger forever, and USCIS comprehends that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they are ready to deny applications that are not certifying. And more info they do so, as was pointed out


The local center component of the program is not. It is part of an appropriations costs that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiry in September.


The process takes a great while to develop a project and afterwards to get the investors accepted. And they do not want their cash flowing through up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the development of projects.

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I want to clear up 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 feature of the normal EB-5 legislation that is component of the code. It simply is a reality that many of the regional centers that are pooling financial investments have established those in locations of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes good sense.