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The program is put in an extremely strange and non-helpful bureaucratic location for the stimulation of international investment in the United States. We are giving away also much for as well small of an investment.


The regional facilities, with their half-million schemes, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to be about developing company entities, not passive financial investments. It ought to have to do with producing genuine tasks, not specify estimations regarding the indirect development of jobs, which is currently part of the legislation.


Perhaps that is one of the reasons it has actually failed every year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well full of intermediaries, both public and private. The program has more than its share of rumors, which I will enter into later on if anyone is interested.


This is a firm that loves to say yes to applicants, yet as the table in my statement shows, USCIS policemans have a lot extra trouble with EB-5 applications than others. I assume that is something that no one has actually really spoken around a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and for good reason

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Seventh, in this program visas go to individuals who can not get them otherwise and to individuals whose organized financial investment is really less, according to the Federal Reserve, than the average mean web worth of all American family members in 2007. Allow me increase on among my observations.


My estimate based upon the capitalists' permit applications filed 2 years after the initial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not offer the kind of information that we might use on this.


So for every $100 of raised international investment that year, the EB program added one cent. Under a far more unsteady analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thanks for listening to me. I look forward to your comments and questions. [The prepared statement of David North looks like 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 company's migration method team.




Divine offered as Principal Advice of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Director. He has functioned thoroughly with the EB-5 program secretive technique. He was elected, as I comprehend, vice head of state of the Organization to Invest in U.S.A., the national sector association of local centers.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, see it here Senator Grassley, and others.


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, yet it is growing and obtaining toward that. Specifically as USCIS, the agency that oversees the program, has been making the guidelines clearer and the procedures much more logical and clear for the individuals who are arranging financial investments and for the investors who are spending, more people have agreed and able to place initiative and money right into the procedure to locate excellent projects and develop them, and then extra capitalists have actually been eager to spend their money and take the risk and utilize the money to create the tasks that is the factor of the program.

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These projects do not linger for life, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was mentioned


The local facility part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and given that then that program has been extended five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to function up a project and afterwards to get the investors approved. And they do not desire their cash moving with till they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently discouraging the growth of projects.

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I wish to clarify 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 is part directory of the code. link It simply is a truth that a lot of the local facilities that are merging investments have set those instead of high unemployment or in backwoods where half- million-dollar financial investments are permitted, which makes good sense.