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The program is positioned in a very weird and non-helpful bureaucratic place for the stimulation of worldwide financial investment in the United States. We are giving away also much for too tiny of an investment.


The local facilities, with their half-million systems, essentially damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be about developing organization entities, not passive financial investments. It needs to be concerning creating real tasks, not clarify calculations concerning the indirect production of jobs, which is now part of the regulation.


Maybe that is one of the factors why it has actually failed year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of intermediaries, both public and personal. The program has more than its share of detractions, which I will certainly enter into later on if anybody is interested.


This is an agency that enjoys to state yes to candidates, but as the table in my testimony reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high prices of interior denials in this program and forever factor

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Seventh, in this program visas most likely to individuals who might not obtain them any type of various other means and to individuals whose scheduled investment is actually less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Let me increase on one of my observations.


My estimate based upon the capitalists' permit applications submitted 2 years after the first investment-- these are the strong ones that remain and are accepted. 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 use on this.


So for each $100 of boosted foreign financial investment that year, the EB program added one cent. Under a far more wobbly analytical base, the preliminary applications of potential immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I expect your comments and inquiries. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration technique team.




Divine served as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Acting Replacement Director. He has actually functioned extensively with the EB-5 program in exclusive practice. He was elected, as I recognize, vice president discover here of the Organization to Invest in United States, the nationwide sector organization of local facilities.


Divine, we are happy to have you 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 United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were utilized, it would be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and getting towards that. Specifically as USCIS, the firm that supervises the program, has actually been making the regulations clearer and the procedures extra rational and clear for the people that are arranging financial investments and for the investors that are investing, even more people have actually wanted and able to put effort and cash into the procedure to discover good jobs and create them, and after that a lot more investors have wanted to invest their money and take the danger and use the cash to produce the tasks that is the point of the program.

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These tasks do find out this here not linger permanently, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, in fact, they are prepared 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 expense that was established in 1992, and because then that program has been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done currently and go to this site not nearer to the date of expiry in September.


The procedure takes a good while to develop a job and afterwards to obtain the capitalists approved. And they do not want their money moving with until they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently dissuading the development of tasks.

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I wish to clarify that the Regional Center Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 legislation that belongs to the code. It simply is a fact that many of the local facilities that are merging investments have actually established those in areas of high joblessness or in backwoods where fifty percent- million-dollar investments are permitted, which makes good sense.