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The program is placed in an extremely strange and non-helpful governmental location for the stimulation of global investment in the United States. We are providing away too much for also small of an investment.


The regional centers, with their half-million plans, essentially undercut the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to be regarding producing service entities, not easy financial investments. It must have to do with developing actual work, not elaborate computations concerning the indirect production of jobs, which is now part of the legislation.


Perhaps that is among the reasons that it has fallen short year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will enter later on if any person is interested.


This is a firm that enjoys to claim yes to candidates, however as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently reason

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Seventh, in this program visas go to individuals who can not obtain them differently and to people whose scheduled investment is actually less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Allow me broaden on among my monitorings.


My quote based upon the financiers' permit applications submitted 2 years after the first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not give the type of data that we can utilize on this.


So for every $100 of boosted international financial investment that year, the EB program added one cent. Under a a lot more shaky statistical base, the preliminary applications of potential immigrant financiers, USCIS is informing reporters that the degree of investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I expect your comments and questions. [The prepared statement of David North appears as a submission for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice team.




Divine served as Principal Counsel of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Supervisor, and then Performing Replacement Director. He has actually functioned thoroughly with the EB-5 program secretive method. He was elected, as I comprehend, vice head Discover More Here of state of the Organization to Spend in U.S.A., the nationwide market organization of local.


Divine, we are delighted to have you right here. Please go ahead, sir. STATEMENT 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. Thank you for having me.


At most, if all 10,000 slots were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, however it is expanding and obtaining towards that. Particularly as USCIS, the company that oversees the program, has been making the policies more clear and the processes a lot more reasonable and clear for individuals who are organizing investments and for the investors who are investing, even more people have wanted and able to place effort and money right into the process to find good projects and create them, and afterwards much more investors have actually been ready to invest their money and take the threat and utilize the money to create the work that is the point of the program.

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These jobs do not wait about permanently, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, as a matter of fact, they are prepared to refute applications official website that are not qualifying. And they do so, as was pointed out


The local facility part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes a good while to work up a job and afterwards my company to get the investors approved. And they do not desire their cash streaming with up until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of projects.

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I would certainly like to clarify that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 law that belongs to the code. It just is a truth that a lot of the regional facilities that are pooling financial investments have actually established those instead of high unemployment or in backwoods where half- million-dollar financial investments are allowed, which makes feeling.