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First, the program is positioned in an extremely weird and non-helpful administrative place for the stimulation of international financial investment in the United States. Second, its scale is all wrong. We are handing out excessive for also little of an investment. Better, raising venture resources half a million bucks a tranche is, to say the least, inefficient.


The local facilities, with their half-million schemes, basically undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to be about producing service entities, not easy investments. It must be concerning creating actual jobs, not specify estimations regarding the indirect development of jobs, which is now component of the regulation.


Probably that is among the reasons that it has actually stopped working time after time to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with middlemen, both public and personal. The program has more than its share of scandals, which I will certainly get right into later on if anyone is interested.


This is a company that loves to claim yes to applicants, however as the table in my testament reveals, USCIS police officers have a lot extra trouble with EB-5 applications than others. I think that is something that nobody has actually truly talked about a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and completely reason

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Seventh, in this program visas go to individuals that can not get them otherwise and to individuals whose planned investment is in fact much less, according to the Federal Book, than the ordinary mean internet worth of all American family members in 2007. Allow me broaden on one of my monitorings.


My quote based upon the investors' environment-friendly card applications submitted 2 years after the first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not offer the kind of information that we could utilize on this.


For every $100 of increased foreign financial investment that year, the EB program contributed one penny. Under a far more shaky statistical base, the preliminary applications of would-be immigrant financiers, USCIS is telling journalists that the degree of financial investment in the just-concluded year was about check here $1.2 billion. Allow us approve that.

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Thank you for listening to me. I look ahead to your comments and concerns. [The prepared declaration of David North shows up as an entry for the record.] Chairman Leahy. Thank you. 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 migration method team.




Divine served as Principal Counsel of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Acting Deputy Supervisor. He has actually functioned extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice head of state of the Association to Invest in USA, the national market organization of local.


Divine, why not try these out we are delighted to have you below. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the agency that supervises the program, has actually been making the guidelines clearer and the procedures more logical and clear for the individuals that are arranging investments and for the investors that are investing, website here even more people have been eager and able to place initiative and cash right into the process to locate excellent jobs and establish them, and after that more financiers have actually wanted to spend their cash and take the danger and use the cash to develop the jobs that is the point of the program.

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These tasks do not wait around forever, and USCIS recognizes that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional facility component of the program is not. It belongs to an appropriations bill that was passed in 1992, and considering that then that program has actually been extended 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 day of expiration in September.


The procedure takes a good while to work up a job and then to get the financiers approved. And they do not want their cash flowing via till they have been approved. And the specter of the expiry of this Regional Center Program in September is currently dissuading the growth of projects.

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I would love to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that is component of the code. It just is a truth that many of the local facilities that are merging financial investments have actually established those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, which makes good sense.