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The program is placed in a really strange and non-helpful administrative place for the stimulation of global financial investment in the United States. We are offering away as well much for as well tiny of a financial investment.


The local facilities, with their half-million systems, essentially damaged the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, need to be concerning producing company entities, not passive financial investments. It must have to do with producing actual work, not clarify calculations about the indirect production of jobs, which is currently part of the regulation.


Possibly that is among the reasons it has fallen short time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will enter into later on if anyone is interested.


This is an agency that loves to claim yes to applicants, but as the table in my statement shows, USCIS police officers have much a lot more problem with EB-5 applications than others. I think that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently reason

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Seventh, in this program visas go to people who could not obtain them otherwise and to people whose planned investment is in fact less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Allow me increase on one of my observations.


My quote based on the capitalists' eco-friendly card applications submitted 2 years after the first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not offer the sort of information that we might utilize on this.


So for every single $100 of enhanced foreign financial investment that year, the EB program added one dime. Under a much a lot more wobbly analytical base, the first applications of potential immigrant investors, USCIS is telling journalists that the level of financial investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thank you for listening to me. I expect your remarks and questions. [The prepared statement of David North looks like an entry 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 company's immigration method team.




Divine served as Principal Guidance of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in exclusive practice. He was elected, as I comprehend, vice Learn More Here head of state of the Association to Invest in U.S.A., the nationwide market association of regional.


Divine, we are happy to have you right here. Please proceed, sir. 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. Thank you for having me.


At most, if all 10,000 ports were utilized, it would be 1 percent of the migration every year to the USA. It is not near that yet, yet it is growing and obtaining towards that. Especially as USCIS, the company that looks after the program, has been making the rules clearer and the procedures more logical and clear for individuals that are arranging investments and for the investors who are click this spending, more people have actually wanted and able to put effort and cash right into the procedure to locate great jobs and create them, and after that much more investors have actually agreed to spend their cash and take the danger and utilize the cash to develop the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, actually, they are all set to reject applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes an excellent while to work up a task and after that to obtain the investors authorized. And they do not want their money streaming with up until they have been approved. And the specter of the expiry of this Regional Center Program in September is currently dissuading the advancement of projects.

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I want to clarify that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million or a million is a more function of the normal EB-5 legislation that becomes part of the code. It just is a truth that the majority of the regional facilities that are pooling investments have actually set those in places of high joblessness or in country areas where fifty percent- million-dollar investments are allowed, and that makes good sense.