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The program is placed in an extremely weird and non-helpful governmental location for the excitement of international investment in the United States. We are offering away as well much for also small of a financial investment.

The regional centers, with their half-million systems, essentially damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should be concerning developing organization entities, not easy financial investments. It ought to be regarding developing real tasks, not specify calculations about the indirect creation of jobs, which is currently component of the legislation.


Perhaps that is among the factors why it has stopped working time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too loaded with intermediaries, both public and personal. The program has even more than its share of detractions, which I will obtain right into later if any person is interested.


This is an agency that loves to state yes to applicants, however as the table in my testament reveals, USCIS officers have much a lot more trouble with EB-5 applications than others. I assume that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever reason

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Seventh, in this program visas most likely to people that can not get them any type of various other method and to individuals whose planned financial investment is actually less, according to the Federal Book, than the average mean total assets of all American households in 2007. Allow me expand on among my observations.


My estimate based on the financiers' copyright applications filed 2 years after the first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not supply the type of data that we can use on this.


So for each $100 of raised foreign financial investment that year, the EB program added one penny. Under a much more shaky statistical base, the initial applications of would-be immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I eagerly anticipate your remarks and questions. [The ready declaration of David North appears as a submission for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.

Divine functioned as Chief Advise of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and then Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Association to Invest in U.S.A., the nationwide sector association of local.


Divine, we are delighted to have you here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were made use of, it would be 1 percent of the migration yearly to the United States. It is not near that yet, but it is growing and obtaining toward that. Especially as USCIS, the firm that supervises the program, has been making the policies clearer and the procedures a lot more rational and clear for individuals that are arranging financial investments and for the capitalists that are investing, more people have actually been ready and able to place initiative and money right into the procedure to discover great tasks and develop them, and afterwards more capitalists have actually wanted to invest their cash and take the danger and make use of the cash to create the jobs that is the factor of the program.

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

The local center part of website the program is not. It belongs to an appropriations bill that was passed 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 currently and not nearer to the day of expiration in September.


The process takes an excellent while to develop a job and after that to get the financiers accepted. And they do not want their cash streaming via up until they have been approved. And the specter of the expiry of this Regional Center Program in September is already dissuading the growth of projects.

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I would love to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It just is a reality that most of the local centers that are pooling investments have set those instead of high joblessness or in rural locations where fifty percent- million-dollar financial investments are allowed, and that makes feeling.