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The program is positioned in an extremely strange and non-helpful governmental location for the excitement of international financial investment in the United States. We are offering away too much for as well small of a financial investment.


The regional facilities, with their half-million plans, basically undercut the much more reasonable 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 organization entities, not passive investments. It must have to do with producing actual work, not specify calculations regarding the indirect production of work, which is now part of the legislation.


Possibly that is one of the factors why it has stopped working year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too filled with intermediaries, both public and private. The program has greater than its share of rumors, which I will get involved in later on if anybody is interested.


This is a company that likes to claim yes to candidates, however as the table in my testament shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually truly chatted around much. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever factor

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Seventh, in this program visas go to individuals who could not obtain them otherwise and to people whose planned investment is really much less, according to the Federal Book, than the ordinary mean internet worth of all American families in 2007. Allow me broaden on one of my monitorings.


My price quote based on the financiers' permit applications filed 2 years after the first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not provide the kind of information that we might utilize on this.


For every $100 of boosted international investment that year, the EB program contributed one dime. Under a a lot more wobbly statistical base, the initial applications of would-be immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and questions. [The ready declaration of David North appears blog as an entry for the document.] Chairman Leahy. Thanks. 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 immigration technique team.




Divine served as Chief Advise of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in personal method. He was chosen, as I understand, vice president of the Association to Spend in United States, the national industry association of local facilities.


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


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the agency internet that looks after the program, has actually been making the guidelines more clear and the procedures more logical and clear for individuals that are organizing investments and for the capitalists that are spending, even more people have wanted and able to put effort and cash right into the procedure to find great projects and develop them, and after that extra capitalists have actually wanted to invest their cash and take the threat and make use of the cash to create the jobs that is the factor of the program.

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These projects do not linger forever, 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, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was discussed


The regional facility part of the program is not. It is part of an appropriations bill that was enacted in 1992, and considering that then that program has been expanded five times for 19 years. It is time for it to my sources be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a project and after that to obtain the capitalists approved. And they do not want their cash moving through until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already preventing the advancement of tasks.

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I would love to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 legislation that is part of the code. It simply is a reality that a lot of the regional centers that are merging financial investments have set those instead of high joblessness or in backwoods where half- million-dollar investments are permitted, and that makes good sense.