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Initially, the program is put in a very odd and non-helpful administrative area for the stimulation of global investment in the United States. Second, its range is all incorrect. We are handing out excessive for as well little of an investment. Better, increasing financial backing half a million bucks a tranche is, to claim the least, ineffective.


The local centers, with their half-million systems, essentially damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should be about producing business entities, not passive financial investments. It needs to have to do with creating actual jobs, not elaborate calculations concerning the indirect production of work, which is now part of the regulation.


Probably that is among the reasons it has stopped working time after time to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well full of intermediaries, both public and personal. The program has greater than its share of detractions, which I will certainly enter later on if any person is interested.


This is a company that loves to say yes to candidates, however as the table in my statement reveals, USCIS officers have far more trouble with EB-5 applications than others. I assume that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently reason

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Seventh, in this program visas most likely to people that could not get them otherwise and to individuals whose scheduled financial investment is in fact less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Let me broaden on one of my monitorings.


My quote based on the capitalists' environment-friendly card applications filed 2 years after the very first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not give the type of data that we might make use of on this.


So for every $100 of increased international investment that year, the EB program contributed one penny. Under a far more shaky analytical base, the initial applications of prospective 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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Thank you for paying attention to me. I anticipate your remarks and concerns. [The prepared declaration of David North looks like a submission for the document.] 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 group.




Divine worked as Principal Advise of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Director. He has actually functioned extensively with the EB-5 program secretive practice. He was elected, as I understand, vice president of the Association to Invest in United States, the nationwide sector organization of regional.


Divine, we are happy to have you right here. Please go ahead, 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. go to the website Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration each year to the United States. It is not near that yet, but it is growing and obtaining toward that. Specifically as USCIS, the agency that oversees the program, has been making the guidelines more clear and the processes much more sensible and clear for the individuals that are organizing financial investments and for the financiers who are spending, more individuals have actually wanted and able to place initiative and money right into the procedure to find good projects and establish them, and afterwards much more capitalists have agreed to invest their cash and take the danger and make use of the cash to produce the jobs that is the factor of the program.

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These projects do not wait about permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It is part of an appropriations bill that was established in 1992, and because then that program has actually been expanded 5 times for 19 years. It is weblink time for it to be irreversible, and it requires to be done currently look at this site and not nearer to the day of expiry in September.


The process takes a good while to work up a project and afterwards to obtain the investors accepted. And they do not desire their money streaming with until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the advancement of projects.

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I want to clarify that the Regional Center Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It just is a truth that many of the local centers that are merging financial investments have established those instead of high unemployment or in backwoods where half- million-dollar financial investments are allowed, which makes good sense.