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


The regional facilities, with their half-million systems, basically damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must have to do with developing company entities, not easy investments. It should be concerning creating actual work, not clarify calculations about the indirect development of tasks, which is currently part of the regulations.


Probably that is among the factors why it has stopped working time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled up with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter later if anyone is interested.


This is a company that likes to say yes to applicants, however as the table in my statement reveals, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently reason

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Seventh, in this program visas go to individuals who might not get them any other means and to people whose planned investment is actually less, according to the Federal Reserve, than the average mean web worth of all American family members in 2007. Allow me broaden on one of my monitorings.


My price quote based on the investors' permit applications submitted 2 years after the initial financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not supply the type of information that we might utilize on this.


So for each $100 of increased foreign financial investment that year, the EB program contributed one penny. Under a much extra wobbly analytical base, the first applications of potential immigrant capitalists, USCIS is informing journalists that the level of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thanks for listening to me. I expect your comments and concerns. [The prepared statement of David North appears as an entry for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine worked as Chief Guidance of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has functioned extensively with the EB-5 program in private technique. He was elected, as I understand, vice president of the Association to Buy USA, the national sector association of local facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, 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 a lot of, if all 10,000 ports were utilized, it would be 1 look at here percent of the immigration each year to the United States. It is not near that yet, however it is growing and obtaining toward that. Especially as USCIS, the agency that looks after the program, has actually been making the regulations clearer and the procedures a lot more reasonable and clear for individuals that are organizing investments and for the capitalists who are spending, more individuals have been ready and able to put effort and money right into the procedure to locate great tasks and develop them, and after that much more capitalists have wanted to spend their money and take the risk and utilize the money to produce the work that is the point of the program.

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These jobs do not linger forever, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in reality, they prepare to deny applications that are not certifying. And they do so, as was stated


The regional facility component of the program is not. It is part of an appropriations costs that was established in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to function up a job and after that to obtain the investors accepted. And they do not want their money why not try these out moving through until they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently preventing the advancement of jobs.

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I would such as to make clear that the Regional Center Program is not the same as the half-million-dollar thing. The important site concept of half a million or a million is a feature of the normal EB-5 legislation that belongs to the code. It just is a truth that a lot of the regional centers that are merging investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are allowed, which makes sense.