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The program is put in a really weird and non-helpful governmental place for the stimulation of worldwide investment in the United States. We are offering away too much for too tiny of an investment.


The local facilities, with their half-million systems, essentially undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must have to do with creating company entities, not passive investments. It ought to have to do with producing genuine jobs, not elaborate computations about the indirect development of tasks, which is currently component of the legislation.


Possibly that is one of the reasons that it has actually stopped working time after time to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of middlemen, both public and private. The program has more than its share of detractions, which I will certainly get into later if any person is interested.


This is a firm that likes to say yes to candidates, yet as the table in my statement shows, USCIS officers have far more difficulty with EB-5 applications than others. I assume that is something that nobody has truly discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for excellent reason

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Seventh, in this program visas most likely to people that could not obtain them differently and to people whose planned financial investment is actually less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Allow me expand on one of my observations.


My price quote based on the capitalists' environment-friendly card applications filed 2 years after the very first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not provide the type of information that we can use on this.


For every $100 of raised international financial investment that year, the EB program contributed one cent. Under a far more shaky analytical base, the preliminary applications of potential immigrant investors, USCIS is telling journalists that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for listening to me. I look forward to your remarks and concerns. [The prepared declaration of David North looks like a submission 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 worked as Chief Advise of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Director, and then Performing Deputy Director. He has actually worked extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice head of state of the Association to Purchase USA, the national market association of regional centers.


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


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding and getting toward that. Particularly as USCIS, the agency that looks after the program, has been making the policies clearer and the processes extra sensible and clear for the individuals that are organizing investments and for the financiers who are investing, more individuals have wanted and able to place initiative and cash into the process to find great projects and create them, and after that a lot more financiers have actually wanted to invest their money and take the threat and use the cash to produce the tasks that is the point of the program.

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These projects do not linger forever, and USCIS recognizes that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, in truth, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The regional facility component of the program is not. It is component of an appropriations bill that was enacted in 1992, and given that then that program has actually been expanded 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 day of expiration in September.


The process takes a good while to develop a project and then to get the financiers accepted. And they do not desire their cash streaming through until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is already preventing the advancement of projects.

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I would certainly such as to clear up that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the routine website EB-5 law that becomes part of the code. It simply is a truth that many of the regional facilities that are pooling financial investments have actually set those instead of high joblessness or in backwoods where half- million-dollar financial investments are allowed, and that makes good sense.