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The program is positioned in a very strange and non-helpful administrative place for the excitement of global financial investment in the United States. We are providing away also much for also tiny of an investment.


The regional facilities, with their half-million plans, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should have to do with producing company entities, not passive financial investments. It should be concerning producing real tasks, not elaborate estimations regarding the indirect creation of tasks, which is now component of the regulations.


Probably that is among the factors why it has fallen short every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled with intermediaries, both public and personal. The program has greater than its share of rumors, which I will get involved in later if anyone is interested.


This is a firm that likes to claim yes to candidates, but as the table in my testament reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas go to individuals who could not obtain them differently and to individuals whose planned investment is in fact less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Allow me broaden on one of my monitorings.


My quote based upon the capitalists' environment-friendly card applications filed 2 years after the very first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not supply the sort of data that we might use on this.


So for each $100 of enhanced foreign financial investment that year, the EB program added one cent. Under a much more shaky analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for listening to me. I expect your remarks and questions. [The ready declaration of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique team.




Divine worked as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Director, and then Performing Replacement Director. He has functioned extensively with the EB-5 program secretive method. He was elected, as I understand, vice head of state of the Organization to Purchase USA, the nationwide sector organization of regional facilities.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 ports were used, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the company that supervises the program, has actually been making the guidelines more clear and the processes a lot more rational and clear for the individuals who are organizing financial investments and for the financiers who are spending, more individuals have wanted and able to put effort and cash right into the procedure to locate great tasks and develop here them, and after that a lot more investors have been eager to invest their money and take the threat and make use of the cash to produce the tasks that is the factor of the program.

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These tasks do not linger for life, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, as a matter of fact, they are ready to deny applications that are not certifying. And they do so, as was stated


The regional center part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to develop a task and then to obtain the investors authorized. And they do not desire their money streaming through up until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of tasks.

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I would like to clear up 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 becomes part of the code. It just is a truth that most of the regional centers that are pooling investments have established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes good sense.