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First, the program is positioned in a very strange and non-helpful governmental area for the excitement of global investment in the USA. Second, its scale is all incorrect. We are distributing way too much for as well tiny of an investment. Further, elevating financial backing half a million dollars a tranche is, to say the least, ineffective.


The local facilities, with their half-million plans, 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 perform in Australia, need to have to do with creating company entities, not passive investments. It ought to be regarding creating real tasks, not clarify computations about the indirect creation of work, which is now component of the regulations.


Probably that is just one of the reasons that it has failed every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled up with middlemen, both public and personal. The program has greater than its share of detractions, which I will enter into later if anybody is interested.


This is a company that enjoys to say yes to applicants, but as the table in my statement reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and completely factor

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


My estimate based on the investors' copyright applications submitted 2 years after the very first financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not offer the type of information that we might make use of on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a a lot more unsteady statistical base, the initial applications of would-be immigrant investors, 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 listening to me. I look forward to your remarks and questions. [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 a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.




Divine served as Principal Advice of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Supervisor. He has worked extensively with the EB-5 program in exclusive method. He was chosen, as I recognize, vice president of the Association to Spend in USA, the national sector association of local centers.


Divine, we are thrilled to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were made use of, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is expanding and getting towards that. Especially as USCIS, the company that looks after the program, has actually been making the guidelines more clear and the procedures a lot more sensible and clear for individuals that are organizing investments and for the financiers who are investing, even more individuals have actually been ready and able to put effort and money into the procedure to discover excellent projects and establish them, and then more investors have agreed to spend their cash and take the risk and make use of the money to create the tasks that is the factor of the program.

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These projects do not wait about for life, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, as a matter of fact, they are ready to deny applications that are not certifying. And they do so, as was mentioned


The local center component of the program is not. It is part EB5 Regional Center Program of an appropriations costs that was enacted in 1992, and since then that program has been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to function up a task and after that to obtain the investors authorized. And they do not desire their money moving via until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is currently preventing the growth of tasks.

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I want to clear up that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It just is a fact that many of the regional centers that are pooling investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes feeling.