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The program is placed in a really weird and non-helpful administrative place for the stimulation of international investment in the United States. Second, its range is all wrong. We are distributing way too much for as well small of an investment. Further, elevating endeavor funding fifty percent a million bucks a tranche is, to say the least, inefficient.


The local facilities, with their half-million schemes, essentially damaged the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, must be regarding creating service entities, not passive investments. It ought to be concerning producing actual work, not clarify computations regarding the indirect production of jobs, which is now component of the regulation.


Perhaps that is just one of the reasons why it has fallen short year after year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and personal. The program has greater than its share of rumors, which I will enter into later if anyone is interested.


This is an agency that enjoys to state yes to candidates, however as the table in my statement reveals, USCIS officers have a lot extra problem with EB-5 applications than others. I think that is something that nobody has actually really talked around much. EB5 Regional Center Program. There are high prices of internal rejections in this program and for good 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 investment is in fact much less, according to the Federal Reserve, than the typical mean internet well worth of all American families in 2007. Let me broaden on among my monitorings.


My quote based upon the financiers' copyright applications filed 2 years after the initial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not provide the type of data that we can make use of on this.


So for each $100 of increased foreign financial investment that year, the EB program contributed one dime. Under a much a lot more unsteady statistical base, the first applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I expect your comments and questions. [The prepared declaration of David North appears as an entry for the record.] 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 technique group.




Divine acted as Chief Advise of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Director. He has actually here functioned thoroughly with the EB-5 program in personal practice. He was chosen, as I comprehend, vice president of the Organization to Invest in United States, the national sector association of local.


Divine, we are happy to have you here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration each year to the USA. It is not near that yet, yet it is growing and obtaining towards that. Specifically as USCIS, the agency that manages the program, has actually been making the rules clearer and the procedures more logical and clear for the individuals who are organizing investments and for the capitalists who are investing, more people have actually been ready and able to place initiative and cash right into the process to find excellent jobs and establish them, and after that extra investors have agreed to spend their money and take the risk and use the money to create the jobs that is the point of the program.

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These jobs do not wait around for life, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, actually, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The local center component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes an excellent while to develop a job and then to get the investors accepted. And they do not want their cash flowing through till they have actually been approved. And the specter of the expiry of this Regional Center Program in September is currently preventing the growth of jobs.

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I want to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It just is a fact that a lot of the regional facilities that are merging financial investments have actually set those in places of high unemployment or in backwoods where fifty percent- million-dollar investments are permitted, which makes feeling.