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First, the program is placed in an extremely odd and non-helpful governmental location for the excitement of global investment in the United States. Second, its range is all wrong. We are distributing way too much for also tiny of a financial investment. Additionally, increasing venture resources fifty percent a million bucks a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million systems, basically damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must be about producing organization entities, not passive financial investments. It ought to be concerning producing real tasks, not elaborate computations regarding the indirect development of jobs, which is now part of the regulations.


Perhaps that is just one of the reasons it has stopped working year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter into later on if anybody is interested.


This is a company that loves to state yes to applicants, however as the table in my testimony reveals, USCIS officers have far more trouble with EB-5 applications than others. I assume that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely reason

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Seventh, in this program visas most likely to people that might not get them differently and to individuals whose scheduled financial investment is in fact less, according to the Federal Get, than the typical mean net worth of all American households in 2007. Allow me expand on among my observations.


My price quote based upon the investors' environment-friendly card applications filed 2 years after the initial financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not give the kind of information that we might make use of on this.


So for each $100 of boosted foreign investment that year, the EB program contributed one penny. Under a a lot more unsteady analytical base, the preliminary applications of prospective immigrant capitalists, click here USCIS is informing reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I anticipate your comments and inquiries. [The ready 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 company's migration practice group.




Divine functioned as Chief Counsel of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program in personal technique. He was chosen, as I comprehend, vice president of the Organization to Buy U.S.A., the nationwide sector association of regional facilities.


Divine, we are delighted to have you right here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is growing and obtaining toward that. Particularly as USCIS, the firm that oversees the program, has actually been making the rules clearer and the procedures much more rational and clear for the individuals who are arranging investments and for the financiers that are investing, even more individuals have wanted and able to put initiative and cash into the procedure to find great jobs and create them, and after that extra capitalists have actually been eager to spend their cash and take the danger and make use of the cash to produce the work that is the factor of the program.

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These projects do not linger for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations costs that was passed in 1992, and because then that program has been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to function up a job and after that to obtain the financiers approved. And they do not want their money flowing through up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already dissuading the growth of projects.

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I wish to clarify that the Regional Facility Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 legislation that belongs to the code. It just is a truth that many of the local centers that are pooling investments have set those in areas of high joblessness or in country areas where half- million-dollar financial investments are allowed, and that makes good sense.