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The program is put in a very weird and non-helpful bureaucratic area for the excitement of international financial investment in the United States. We are giving away also much for as well tiny of a financial investment.


The local facilities, with their half-million plans, basically damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must be concerning creating company entities, not passive financial investments. It should be about producing actual work, not clarify calculations about the indirect production of jobs, which is currently component of the regulations.


Probably that is just one of the reasons that it has failed every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too filled with middlemen, both public and exclusive. The program has more than its share of rumors, which I will certainly enter into later if any person is interested.


This is a firm that likes to say yes to candidates, but as the table in my testimony shows, USCIS policemans have much more trouble with EB-5 applications than others. I assume that is something that no one has actually discussed much. EB5 Regional Center Program. There are high prices of inner denials in this program and for excellent factor

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Seventh, in this program visas go to individuals who can not obtain them otherwise and to individuals whose scheduled investment is actually much less, according to the Federal Get, than the ordinary mean internet worth of all American households in 2007. Allow me broaden on one of my observations.


My estimate based on the financiers' permit applications submitted 2 years after the first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not offer the sort of data that we could make use of on this.


For every $100 of enhanced foreign financial investment that year, the EB program contributed one penny. Under a a lot more shaky statistical base, the initial applications of would-be 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 accept that.

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Thanks for listening to me. I eagerly anticipate your comments and questions. [The prepared declaration of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique group.




Divine offered as Principal Counsel of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has worked extensively with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Organization to Spend in United States, the national sector organization of local centers.


Divine, we are delighted to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. discover here (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were utilized, it would be 1 percent of the immigration annually to the United States. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the agency that supervises the program, has actually been making the guidelines clearer and the processes extra sensible and clear for individuals that are arranging financial investments and for the financiers who are spending, more people have actually agreed and able to place effort and cash right into the procedure to find great tasks and create them, and after that much more financiers have agreed to invest their money and take the risk and utilize the money to create the work that is the factor of the program.

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These jobs do not wait about forever, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, in truth, they are all set to deny applications that are not certifying. And they do so, as was pointed out


The local center component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and considering that then that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a great while to develop a task and afterwards to obtain the investors approved. And they do not want their money flowing through till they have been authorized. And the specter of navigate to these guys the expiration of this Regional Facility Program in September is already dissuading the development of tasks.

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I would certainly like to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that is part of the code. It just is a fact that the majority of the local centers that are merging investments have established those in places of high unemployment or in rural locations where half- million-dollar financial this page investments are allowed, which makes sense.