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The program is positioned in a really weird and non-helpful governmental area for the excitement of international financial investment in the United States. We are providing away too much for too tiny of a financial investment.


The regional facilities, with their half-million systems, essentially undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be regarding developing company entities, not easy financial investments. It must be concerning producing actual tasks, not elaborate calculations regarding the indirect development of jobs, which is now part of the regulation.


Possibly that is just one of the reasons it has actually stopped working year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of intermediaries, both public and private. The program has greater than its share of rumors, which I will certainly get involved in later if anyone is interested.


This is a firm that likes to claim yes to candidates, however as the table in my testimony shows, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually actually chatted around a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently reason

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Seventh, in this program visas go to individuals who might not get them differently and to individuals whose organized financial investment is really much less, according to the Federal Reserve, than the typical mean net well worth of all American households in 2007. Let me broaden on one of my monitorings.


My estimate based upon the financiers' permit applications filed 2 years after the initial financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not supply the sort of information that we might make use of on this.


So for every single $100 of increased foreign financial investment that year, the EB program added one cent. Under a far more wobbly statistical base, the preliminary applications of would-be immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year was article source about $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I eagerly anticipate your comments and inquiries. [The prepared declaration of David North shows up as an entry for the document.] Chairman Leahy. Thank you. 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 acted as Principal Advice of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Supervisor. He has worked extensively with the EB-5 program secretive method. He was elected, as I understand, vice head of state of the Association to Invest in United States, the national industry organization of local.


Divine, we are happy to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) you can find out more Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were utilized, it would be 1 percent of the immigration annually to the USA. It is not near that yet, however it is expanding and obtaining towards that. Especially as USCIS, the company that supervises the program, has been making the policies more clear and the procedures more rational and clear for individuals who are organizing financial investments and for the investors that are spending, more people have actually wanted and able to put initiative and money into the process to discover good jobs and create them, and afterwards extra capitalists have actually agreed to invest their money and take the danger and utilize the cash to produce the work that is the factor of the program.

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These tasks do not wait around permanently, and USCIS recognizes that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, actually, they prepare to reject applications that are not certifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations costs that was established in 1992, and considering that then that program has actually been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes an excellent while to function up a project and then to get the investors approved. And they do not desire their money streaming with up until they have actually been approved. And the specter of the expiration of this Regional Center you could check here Program in September is already preventing the advancement of projects.

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I want to make clear that the Regional Facility Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 legislation that belongs to the code. It simply is a fact that a lot of the regional centers that are pooling financial investments have actually established those in places of high unemployment or in rural areas where half- million-dollar investments are permitted, and that makes good sense.