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The program is positioned in a really weird and non-helpful administrative area for the excitement of worldwide financial investment in the United States. We are giving away too much for too little of a financial investment.


The local centers, with their half-million schemes, basically undercut the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should have to do with producing company entities, not easy financial investments. It should have to do with creating actual jobs, not elaborate calculations regarding the indirect creation of work, which is now component of the legislation.


Perhaps that is just one of the reasons it has failed year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will certainly get involved in later if any person is interested.


This is an agency that enjoys to claim yes to applicants, however as the table in my testament shows, USCIS policemans have a lot extra problem with EB-5 applications than others. I believe that is something that no one has actually truly discussed much. EB5 Regional Center Program. There are high prices of inner denials in this program and completely factor

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Seventh, in this program visas go to people that can not get them any kind of other way and to people whose scheduled financial investment is in fact much less, according to the Federal Reserve, than the average mean net well worth of all American family members in 2007. Allow me broaden on one of my observations.


My quote based on the investors' environment-friendly card applications submitted 2 years after the very first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not supply the type of data that we can utilize on this.


So for each $100 of increased international investment that year, the EB program contributed one penny. Under a a lot more unsteady statistical base, the first applications of would-be immigrant investors, USCIS is telling journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for listening to me. I look ahead to your comments and questions. [The prepared declaration of David North shows up as a submission 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 practice group.




Divine acted as Chief Advise of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and then Acting Replacement Director. He has worked extensively with the EB-5 program in exclusive technique. He was elected, as I understand, vice head of state of the Organization to Spend in USA, the national market association of local.


Divine, we are happy to have you below. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were utilized, it would be 1 percent of the migration yearly to the USA. It is not near that yet, however it is growing and obtaining toward that. Especially as USCIS, the firm that oversees the program, has been making the rules more clear and the processes extra logical and clear for individuals who are organizing financial investments and for the investors who YOURURL.com are investing, even more individuals have wanted and able to put initiative and money right into the procedure to discover good jobs and create them, and after that extra investors have actually agreed to invest their money and take the threat and utilize the cash to produce the work that is the point of the program.

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These projects do not wait around for life, and USCIS understands that and are attempting to speed up the program, site web speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, in truth, they prepare to refute applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and since 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 expiry in September.


The process takes an excellent while to develop a task and then to get the investors approved. And they do not desire their money flowing with up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the growth of projects.

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I want to clear up that the Regional Facility Program get redirected here is not the very same as the half-million-dollar thing. The idea 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 reality that most of the regional facilities that are merging investments have established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes feeling.