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The program is placed in an extremely weird and non-helpful governmental location for the stimulation of worldwide financial investment in the United States. We are providing away also much for as well small of a financial investment.


The local centers, with their half-million plans, basically undercut the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should have to do with developing service entities, not passive investments. It ought to be about producing actual jobs, not clarify calculations concerning the indirect production of jobs, which is currently part of the legislation.


Probably that is among the reasons that it has actually fallen short time after time to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with intermediaries, both public and personal. The program has even more than its share of scandals, which I will enter into later if anyone is interested.


This is a company that enjoys to claim yes to applicants, but as the table in my testament reveals, USCIS policemans have a lot extra trouble with EB-5 applications than others. I think that is something that no one has actually actually spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and for great factor

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Seventh, in this program visas go to people that might not get them differently and to individuals whose organized investment is really less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Allow me expand on one of my monitorings.


My estimate based on the financiers' permit applications filed 2 years after the initial financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not give the kind of information that we might use on this.


For every $100 of raised international financial investment that year, the EB program contributed one dime. Under a a lot more shaky statistical base, the initial applications of prospective immigrant investors, USCIS is telling journalists that the degree of 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 prepared declaration of David North appears as an entry for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine acted as Principal Guidance of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program in private method. He was chosen, as I recognize, vice head of state of the Association to Invest in U.S.A., the nationwide industry association of regional.


Divine, we are pleased to have you below. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were utilized, top article it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, but it is growing and getting towards that. Especially as USCIS, my blog the company that manages the program, has been making the regulations more clear and the processes more sensible and clear for individuals who are organizing financial investments and for the financiers that are investing, more people have agreed and able to put effort and cash into the procedure to locate great jobs and establish them, and afterwards a lot more investors have actually been ready to invest their money and take the threat and use the cash to produce the jobs that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was stated


The local center part of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes a good while to develop a job and after that to obtain the capitalists authorized. And they do not want their cash moving with until they have been approved. And the specter of the expiration of this Regional Facility Program in September is visit the site currently discouraging the development of projects.

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I want to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 legislation that belongs to the code. It simply is a reality that many of the regional facilities that are pooling investments have established those instead of high unemployment or in rural locations where half- million-dollar investments are enabled, and that makes feeling.