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The program is put in a very strange and non-helpful governmental location for the stimulation of international investment in the United States. We are giving away too much for also little of a financial investment.


The regional facilities, with their half-million schemes, basically undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to have to do with producing business entities, not easy investments. It ought to have to do with producing actual tasks, not specify computations concerning the indirect development of tasks, which is currently component of the regulation.


Perhaps that is one of the reasons that it has fallen short every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of intermediaries, both public and private. The program has more than its share of rumors, which I will get into later if anybody is interested.


This is an agency that loves to claim yes to candidates, however as the table in my statement reveals, USCIS police officers 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 prices of inner denials in this program and completely factor

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Seventh, in this program visas go to individuals that might not get them otherwise and to people whose scheduled financial investment is in fact much less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Allow me broaden on among my observations.


My quote based upon the investors' permit applications submitted 2 years after the very first investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not provide the sort of information that we might make use of on this.


So for every $100 of increased international investment that year, the EB program added one cent. Under a much a lot more shaky statistical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the Learn More level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for listening to me. I anticipate your remarks and inquiries. [The ready declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice team.




Divine worked as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program in private method. He was chosen, as I understand, vice president of the Organization to Buy U.S.A., the nationwide market organization of regional facilities.


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


At a lot of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the her latest blog agency that manages the program, has actually been making the policies clearer and the processes extra rational and clear for individuals that are organizing financial investments and for the capitalists that are investing, more individuals have actually been eager and able to put effort and money into the process to discover good projects and develop them, and then much more capitalists have wanted to invest their money and take the risk and make use of the cash to create the jobs that is the point of the program.

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These jobs do not wait around forever, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, in reality, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The local facility part of the program is not. It belongs to an appropriations bill that was passed in 1992, and since then that program has actually 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 date of expiry in September.


The process Visit This Link takes a good while to develop a project and after that to get the investors authorized. And they do not desire their money moving through up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of projects.

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I would certainly such as to make clear that the Regional Center Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 regulation that belongs to the code. It simply is a fact that the majority of the local centers that are merging financial investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, and that makes good sense.