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The program is placed in a very odd and non-helpful bureaucratic place for the excitement of worldwide financial investment in the United States. We are giving away too much for also tiny of a financial investment.


The local centers, with their half-million schemes, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must be regarding producing business entities, not passive financial investments. It needs to be concerning producing actual jobs, not specify computations concerning the indirect creation of tasks, which is currently part of the regulations.


Possibly that is among the reasons it has actually stopped working every year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with intermediaries, both public and private. The program has greater than its share of rumors, which I will get involved in later on if anybody is interested.


This is a company that likes to claim yes to applicants, but as the table in my statement reveals, USCIS officers have much a lot more trouble with EB-5 applications than others. I believe that is something that no one has really spoken about much. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas go to individuals who can not obtain them any type of other way and to people whose organized investment is actually much less, according to the Federal Book, than the average mean total assets of all American families in 2007. Allow me broaden on one of my monitorings.


My quote based on the investors' copyright applications filed 2 years after the initial financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not provide the sort of data that we can make use of on this.


So for every single $100 of increased international financial investment that year, the EB program contributed one dime. Under a far more wobbly analytical base, the first applications of potential immigrant investors, USCIS is informing journalists 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 to me. I expect your comments and inquiries. [The prepared statement of David North looks like an entry 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 method team.




Divine worked as Principal Counsel of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has actually functioned extensively with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Organization to Invest in U.S.A., the nationwide industry association of regional centers.


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. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 ports were utilized, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is expanding and getting towards that. Especially as USCIS, the agency that oversees the program, has actually been making the guidelines more clear why not check here and the processes extra logical and clear for individuals that are arranging investments and for the investors who are spending, more people have been eager and able to put initiative click now and cash right into the procedure to find good jobs and develop them, and afterwards much more financiers have actually wanted to spend their money and take the danger and utilize the cash to produce the tasks that is the point of the program.

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These projects do not linger permanently, and USCIS comprehends that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, in reality, they are prepared to deny applications that are not certifying. And they do so, as was pointed out


The local center part of the program is not. It belongs to an appropriations costs that was enacted in 1992, and considering that then that program has actually been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes an excellent while to work up a task and after that to obtain the financiers accepted. And they do not want their cash flowing via until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already preventing the advancement of projects.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar Look At This point. The concept of half a million or a million is a function of the regular EB-5 regulation that is component of the code. It just is a truth that most of the regional centers that are pooling financial investments have established those instead of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes sense.