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The program is put in an extremely strange and non-helpful bureaucratic area for the stimulation of international financial investment in the United States. We are giving away as well much for also little of a financial investment.


The regional facilities, with their half-million plans, basically damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should be regarding producing business entities, not passive investments. It should have to do with developing real work, not clarify estimations concerning the indirect production of tasks, which is now part of the legislation.


Probably that is one of the reasons it has failed year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also filled up with intermediaries, both public and private. The program has greater than its share of scandals, which I will enter later if any person is interested.


This is a company that likes to state yes to candidates, however as the table in my statement shows, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that nobody has truly discussed much. EB5 Regional Center Program. There are high prices of interior denials in this program and forever reason

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Seventh, in this program visas go to people who could not get them any kind of other means and to people whose scheduled financial investment is in fact less, according to the Federal Reserve, than the ordinary mean web worth of all American family members in 2007. Let me increase on one of my observations.


My quote based upon the financiers' permit applications filed 2 years after the very first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not provide the type of data that we might use on this.


For every $100 of increased foreign financial investment that year, the EB program added one penny. Under a far more shaky analytical base, the first applications of would-be immigrant capitalists, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I eagerly anticipate your comments and concerns. [The ready declaration of David North looks like an entry for the document.] 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 method group.




Divine functioned as Chief Advice of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has actually worked extensively with the EB-5 program in private practice. He was elected, as I comprehend, vice president of the Association to Invest in United States, the national sector organization of local.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is growing and obtaining towards that. Specifically as USCIS, the firm that supervises the program, has been making the rules more clear and the procedures more rational and clear for the individuals that are arranging you could check here financial investments and for the financiers who are spending, even more people find more information have actually been eager and able to put effort and money right into the process to locate good jobs and establish them, and after that more investors have actually agreed to invest their money and take the danger and use the cash to develop the jobs that is the factor of the program.

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These projects do not wait about for life, and USCIS understands that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was discussed


The regional center part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has actually been expanded 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 date of expiration in September.


The procedure takes a great while to function up a project and afterwards to obtain the investors accepted. And they do not desire their cash flowing with up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already discouraging the advancement of jobs.

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I would such as to clarify that the Regional Center Program is not the exact same as the half-million-dollar point. The concept find out of half a million or a million is a function of the normal EB-5 legislation that is part of the code. It simply is a fact that the majority of the local facilities that are pooling financial investments have established those in places of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes feeling.