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The program is positioned in a very weird and non-helpful administrative location for the excitement of international financial investment in the United States. We are giving away also much for as well little of an investment.


The regional facilities, with their half-million schemes, basically undercut the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to be concerning developing business entities, not passive financial investments. It must be about developing genuine work, not clarify computations regarding the indirect development of tasks, which is now component of the regulations.


Perhaps that is one of the reasons that it has actually failed time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well full of intermediaries, both public and private. The program has more than its share of scandals, which I will get involved in later on if any person is interested.


This is an agency that loves to claim yes to applicants, but as the table in my testament reveals, USCIS officers have far more trouble 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 rates of internal denials in this program and for excellent factor

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Seventh, in this program visas go to individuals that could not get them otherwise and to individuals whose scheduled investment is in fact much less, according to the Federal Get, than the typical mean total assets of all American family members in 2007. Let me broaden on one of my observations.


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


So for every single $100 of enhanced foreign investment that year, the EB program contributed one dime. Under a far more wobbly statistical base, the preliminary applications of potential immigrant investors, USCIS is informing reporters that the level of financial investment why not try these out in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I anticipate your comments and concerns. [The prepared statement of David North looks like a submission 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 technique group.




Divine acted as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Replacement Director. He has actually functioned extensively useful site with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Organization to Spend in United States, the national sector association of local.


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


At a lot of, if all 10,000 slots 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 towards that. Specifically as USCIS, the firm that looks after the program, has actually been making the regulations more clear and the procedures a lot more reasonable and clear for the individuals that are arranging financial investments and for the investors that are spending, more individuals have actually wanted and able to place initiative and money into the process to locate excellent jobs and develop them, and after that extra capitalists have actually wanted to invest 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 jobs do not linger for life, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, in fact, they prepare to reject applications that are not certifying. And they do so, as was pointed out


The regional facility part of the program is not. It belongs to an appropriations costs that was established in 1992, and given that then that program has been expanded five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to work up a task and then to get the financiers approved. And they do not desire their money flowing through up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the advancement of tasks.

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I would love to clear up that the Regional Facility Program is not the exact same as the half-million-dollar pop over to these guys thing. The idea of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It simply is a fact that many of the regional centers that are pooling investments have established those in locations of high unemployment or in backwoods where half- million-dollar investments are enabled, which makes feeling.