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Initially, the program is placed in an extremely weird and non-helpful governmental place for the excitement of global financial investment in the USA. Second, its scale is all incorrect. We are handing out also much for too tiny of an investment. Better, raising endeavor funding half a million bucks a tranche is, to claim the least, inefficient.


The regional centers, with their half-million plans, essentially damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should have to do with developing company entities, not passive financial investments. It must be about developing actual jobs, not elaborate calculations regarding the indirect creation of work, which is now component of the regulations.


Perhaps that is among the reasons why it has actually fallen short every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will get involved in later if any person is interested.


This is a company that likes to say yes to applicants, but as the table in my testimony reveals, USCIS officers have far more problem with EB-5 applications than others. I think that is something that no one has actually truly chatted around a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals who can not get them any various other method and to people whose organized financial investment is actually much less, according to the Federal Get, than the average mean total assets of all American households in 2007. Allow me broaden on one of my observations.


My quote based on the investors' permit applications submitted 2 years after the very first investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not supply the type of data that we can make use of on this.


For every $100 of increased international financial investment that year, the EB program contributed one penny. Under a far more unsteady analytical base, the preliminary applications of would-be immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and questions. [The ready declaration of David North looks like an entry for the document.] Chairman Leahy. Thank you. 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 migration technique team.




Divine offered as here Principal Guidance of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has actually worked extensively with the EB-5 program in private practice. He was elected, as I comprehend, vice president of the Organization to Invest in USA, the national industry association of local centers.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is growing and getting toward that. Specifically as USCIS, the firm that supervises the program, has been making the regulations clearer and the procedures much more sensible and clear for individuals that are arranging investments and for the capitalists that are spending, more individuals have been ready and able to place initiative and money right into the process to locate good jobs and establish them, and afterwards more capitalists have been ready to spend their money and take the risk and utilize the cash to develop the jobs that is the point of the program.

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These tasks do not wait about for life, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply 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 stated


The regional facility part of the program is not. It belongs to an appropriations costs that was enacted in 1992, and because then that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes a great while to work up a task and after that to get the investors authorized. And they do not want their money flowing through till they have been accepted. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of jobs.

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I would certainly such as to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 legislation that belongs to the code. It simply is a truth that the majority of the local centers that are pooling financial investments have established those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes feeling.