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The program is placed in a really weird and non-helpful bureaucratic area for the excitement of global investment in the United States. We are providing away too much for as well small of a financial investment.


The local facilities, with their half-million schemes, essentially undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should have to do with creating business entities, not easy investments. It needs to be concerning developing actual work, not specify calculations regarding the indirect creation of work, which is now part of the legislation.


Perhaps that is just one of the reasons why it has fallen short every year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of intermediaries, both public and personal. The program has greater than its share of scandals, which I will certainly get involved in later if anybody is interested.


This is a company that enjoys to state yes to candidates, yet as the table in my testament shows, USCIS officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely factor

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Seventh, in this program visas most likely to individuals who might not get them otherwise and to people whose planned financial investment is really less, according to the Federal Book, than the typical mean web worth of all American families in 2007. Let me expand on one of my monitorings.


My price quote based on the capitalists' copyright applications submitted 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not give the kind of data that we might use on this.


For every $100 of boosted international financial investment that year, the EB program contributed one dime. Under a much extra unsteady analytical base, the initial applications of would-be immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I eagerly anticipate your comments get more info and questions. [The prepared statement 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 company's immigration method team.




Divine functioned as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program in exclusive practice. He was elected, as I comprehend, vice president of the Association to Spend in U.S.A., the nationwide sector organization of local.


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


At most, if all 10,000 ports were utilized, it would be 1 percent of the immigration every year to the United States. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the firm that looks after the program, has been making the regulations more clear and the processes more logical and clear for individuals who are organizing investments and for the financiers that are investing, more individuals have agreed and able to place initiative and money right into the process to find excellent projects and create them, and afterwards extra investors have wanted to invest their money and take the threat and use the cash to create the tasks that is the factor of the program.

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These tasks do not wait around for life, and USCIS understands that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, in truth, they prepare to refute applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and since then that program has actually 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 expiry in September.


The process takes a good while to work up a project and then to obtain the investors accepted. And they do not want their money streaming via up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is currently dissuading the advancement of projects.

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I would like to clarify that the Regional Center Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 legislation that is component of the code. It just is a truth that a lot of the regional centers that are pooling investments have actually set those instead of high unemployment or in rural areas where half- million-dollar investments are enabled, and that makes sense.