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The program is put in a really odd and non-helpful bureaucratic place for the stimulation of international investment in the United States. We are giving away as well much for also tiny of an investment.


The regional facilities, with their half-million plans, essentially undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, must be regarding developing organization entities, not passive financial investments. It must have to do with developing genuine jobs, not clarify computations about the indirect production of jobs, which is currently part of the regulation.


Maybe that is one of the reasons it has fallen short every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with middlemen, both public and exclusive. The program has more than its share of detractions, which I will certainly get involved in later if anybody is interested.


This is a firm that likes to claim yes to applicants, however as the table in my testimony shows, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has really chatted around much. EB5 Regional Center Program. There are high prices of inner denials in this program and forever reason

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Seventh, in this program visas go to individuals who can not get them any kind of other method and to individuals whose scheduled financial investment is in fact less, according to the Federal Reserve, than the average mean web well worth of all American families in 2007. Let me increase on one of my observations.


My estimate based upon the capitalists' copyright applications filed 2 years after the first investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not supply the sort of information that we might utilize on this.


For every $100 of raised international investment that year, the EB program contributed one cent. Under a a lot more unsteady analytical base, the initial applications of potential immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention find this to me. I anticipate your comments and inquiries. [The ready statement of David North looks like an entry for the record.] 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 immigration method group.




Divine worked as Chief Counsel of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Acting Deputy Supervisor. He has functioned extensively with the EB-5 program secretive practice. He was chosen, as I comprehend, vice head of state of the Association to Purchase USA, the nationwide industry association of local facilities.


DECLARATION 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. Thank you, Mr. Chairman, Legislator Grassley, and others.


At most, if all 10,000 ports were used, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, however it is expanding and obtaining towards that. Particularly as USCIS, the firm that manages the program, has been making the rules more clear and the procedures a lot more rational and clear for individuals who are arranging investments and for the investors who are spending, more people have agreed and able to place initiative and money into the procedure to locate excellent tasks and develop them, and after that a lot more capitalists have actually agreed to link invest their money and take the danger and utilize the money to develop the tasks that is the point of the program.

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These tasks do not linger forever, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, actually, they prepare to refute applications that are not certifying. And they do so, as was mentioned


The regional facility part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to work up a task and after that to obtain the investors authorized. And they do not desire their money flowing with until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the advancement of projects.

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I would like to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It just is a reality that many of useful content the regional centers that are pooling investments have actually established those in areas of high joblessness or in backwoods where half- million-dollar investments are enabled, and that makes good sense.