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The program is placed in an extremely weird and non-helpful administrative area for the excitement of international financial investment in the United States. We are providing away as well much for also tiny of a financial investment.


The regional facilities, with their half-million systems, basically undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must be concerning developing service entities, not passive investments. It ought to be regarding developing real work, not clarify calculations concerning the indirect production of work, which is currently part of the regulations.


Perhaps that is one of the reasons why it has stopped working every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with intermediaries, both public and personal. The program has more than its share of rumors, which I will certainly get involved in later if anyone is interested.


This is an agency that loves to state yes to candidates, however as the table in my testimony shows, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high prices of interior rejections in this program and completely reason

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Seventh, in this program visas most likely to individuals who can not get them otherwise and to individuals whose organized financial investment is in fact less, according to the Federal Book, than the ordinary mean net worth of all American families in 2007. Let me broaden on among my monitorings.


My quote based upon the investors' eco-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 concerning $191 million validated-- that is my quote. USCIS does not give the type of data that we might make use of on this.


For every $100 of increased foreign investment that year, the EB program contributed one penny. Under a much extra wobbly analytical base, the first applications of would-be immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thank you for listening to me. I look ahead to your comments and questions. [The prepared declaration of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice group.




Divine functioned as Chief Guidance of the United States visit this site Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and then Performing Deputy Director. He has actually functioned extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice president of the Association to Invest in United States, the national sector organization of local.


Divine, we are pleased to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is growing and obtaining towards that. Specifically as USCIS, the company that oversees the program, has actually been making the rules clearer and the procedures a lot more check out here reasonable and clear for the people that are arranging financial investments and for the investors that are spending, even more individuals have actually agreed and able to put effort and cash right into the procedure to discover good projects and develop them, and after that much more financiers have actually wanted to invest their money and take the threat and utilize the cash to create the tasks that is the point of the program.

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These projects do not wait around for life, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, in reality, they are all set to refute applications that are not certifying. And they do so, as was mentioned


The regional facility component of the program is not. It belongs to an appropriations expense that was passed in 1992, and given that then that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiry in September.


The process index takes a great while to work up a task and after that to obtain the financiers accepted. And they do not desire their money streaming via till they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already discouraging the growth of projects.

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I wish to clarify 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 reality that many of the local centers that are merging investments have set those in areas of high unemployment or in rural areas where fifty percent- million-dollar financial investments are permitted, which makes good sense.