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The program is positioned in a really weird and non-helpful governmental place for the stimulation of global investment in the United States. We are offering away too much for too tiny of an investment.


The local centers, with their half-million schemes, basically undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to have to do with producing business entities, not easy investments. It must be about developing genuine jobs, not specify estimations regarding the indirect creation of work, which is currently part of the legislation.


Perhaps that is just one of the reasons it has actually fallen short every year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well filled with intermediaries, both public and private. The program has even more than its share of scandals, which I will certainly enter into later if any person is interested.


This is a company that likes to state yes to applicants, yet as the table in my statement reveals, USCIS police officers have much a lot more problem with EB-5 applications than others. I think that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever factor

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Seventh, in this program visas most likely to people who might not obtain them differently and to individuals whose planned financial investment is in fact much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Allow me broaden on among my monitorings.


My quote based on the financiers' permit applications filed 2 years after the very first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not give the sort of information that we might utilize on this.


For every $100 of enhanced international financial investment that year, the EB program added one cent. Under a far more unsteady statistical base, the initial applications of would-be immigrant capitalists, USCIS is informing reporters 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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Thank you for listening to me. I look forward to your comments and inquiries. [The prepared declaration of David North appears as a submission 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 immigration method group.




Divine functioned as Principal Guidance of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and then Acting Deputy Director. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I recognize, look at this site vice president of the Organization to Invest in USA, the national market association of local.


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, Legislator Grassley, and others.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the immigration annually to the USA. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the company that oversees the program, has actually been making the rules clearer and the procedures a lot more logical and clear for the individuals that are organizing financial investments and for the capitalists who are spending, more individuals have actually agreed and able to place effort and cash into the process to discover excellent projects and establish them, and afterwards a lot more capitalists have wanted to invest their money and take the danger and utilize the money to produce the tasks that is the point of the program.

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These jobs do not wait around permanently, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was stated


The local facility part of the program is not. It is component of an appropriations bill that was established in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes a good while to develop a project and after that to get the investors accepted. And they do not desire their cash streaming through until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already discouraging the development of projects.

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I would certainly such as to make clear that the Regional Center Program is not the like the click now half-million-dollar point. The concept of half a million or a million is a like it function of the routine EB-5 legislation that belongs to the code. It simply is a fact that the majority of the local facilities that are merging financial investments have actually established those in areas of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.