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The program is put in a very strange and non-helpful governmental place for the excitement of global investment in the United States. Second, its scale is all incorrect. We are giving away also much for too small of a financial investment. Further, elevating endeavor resources fifty percent a million dollars a tranche is, to state the least, ineffective.


The regional centers, with their half-million schemes, basically undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to have to do with producing service entities, not passive investments. It must be about producing genuine jobs, not elaborate calculations regarding the indirect production of tasks, which is currently part of the regulation.


Maybe that is just one of the factors why it has failed time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also loaded with middlemen, both public and private. The program has more than its share of scandals, which I will enter later on if any person is interested.


This is an agency that likes to say yes to applicants, but as the table in my testament reveals, USCIS policemans have a lot more trouble 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 interior rejections in this program and for good reason

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Seventh, in this program visas go to individuals who can not obtain them otherwise and to people whose scheduled investment is really much less, according to the Federal Book, than the ordinary mean internet well worth of all American families in 2007. Let me expand on among my observations.


My price quote based upon the capitalists' permit applications submitted 2 years after the initial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not give the kind of data that we might make use of on this.


So for every single $100 of enhanced foreign financial investment that year, the EB program contributed one penny. Under a much more wobbly statistical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded useful source year was concerning $1.2 billion. Let us accept that.

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Thanks for listening to me. find this I expect your comments and concerns. [The prepared declaration of David North shows up as an entry for the record.] 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 firm's migration technique team.




Divine acted as Chief Counsel of the United States Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Director. He has actually worked extensively with the EB-5 program secretive method. He was elected, as I understand, vice head of state of the Association to Purchase USA, the national sector organization of regional facilities.


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


At a lot of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and obtaining towards that. Specifically as USCIS, the company that supervises the program, has actually been making the rules more clear and the processes a lot more sensible and clear for the people that are organizing investments and for the investors that are investing, more people have agreed and able to place effort and cash into the procedure to locate excellent projects and develop them, and after that more investors have actually agreed to invest their money and take the danger and make use of the cash to create the tasks that is the factor of the program.

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These jobs do not wait about for life, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, in fact, they are all set to deny applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It belongs to an appropriations costs that was passed in 1992, and given that then that program has actually been prolonged 5 times for 19 years. It is time for it you can try these out to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to function up a job and afterwards to obtain the investors approved. And they do not want their cash flowing through till they have been authorized. And the specter of the expiry of this Regional Center Program in September is currently preventing the growth of jobs.

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I would love to clear up that the Regional Center Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 regulation that belongs to the code. It just is a reality that a lot of the local centers that are pooling investments have actually set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes good sense.