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The program is put in a really odd and non-helpful bureaucratic location for the stimulation of international investment in the United States. Second, its scale is all incorrect. We are distributing excessive for too small of a financial investment. Better, raising equity capital half a million bucks a tranche is, to state the least, inefficient.


The regional facilities, with their half-million systems, essentially undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, should have to do with developing service entities, not passive investments. It should have to do with creating genuine jobs, not specify estimations about the indirect production of jobs, which is currently component of the regulations.


Probably that is one of the reasons it has stopped working every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of intermediaries, both public and exclusive. The program has even more than its share of rumors, which I will obtain right into later if anybody is interested.


This is a firm that likes to state yes to candidates, yet as the table in my testament shows, USCIS officers have far more trouble with EB-5 applications than others. I think that is something that nobody has actually truly chatted around a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and permanently factor

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Seventh, in this program visas go to individuals who can not obtain them any various other means and to people whose organized financial investment is in fact much less, according to the Federal Reserve, than the average mean internet well worth of all American households in 2007. Allow me broaden on one of my monitorings.


My estimate based on the investors' permit applications filed 2 years after the first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not offer the sort of information that we can use on this.


So for each $100 of boosted international financial investment that year, the EB program added one dime. Under a a lot more shaky analytical base, the initial applications of prospective immigrant financiers, USCIS is informing journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thank you for listening to me. I look ahead to your remarks and concerns. [The ready declaration of David North shows up as a submission for the record.] Chairman Leahy. Thanks. 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 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 then Acting Deputy Supervisor. He has worked extensively with the EB-5 program secretive method. He my latest blog post was elected, as I understand, vice president of the Organization to Invest in USA, the nationwide sector organization of local centers.


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


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the firm that oversees the program, has actually been making the guidelines clearer and the procedures much more sensible and clear for the people who are arranging investments and for the financiers that are investing, even more people have actually been ready and able to place initiative and cash right into the process to find great projects and establish them, and afterwards a lot more financiers have agreed to spend their money and take the risk and make use of the cash to create the tasks that is the point of the program.

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These tasks do not wait about permanently, and USCIS comprehends that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an special info appropriations expense that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to develop a task and afterwards to obtain the investors approved. And they do not want their money streaming with until they have been authorized. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the growth of jobs.

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I would love to clear up that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million Continued or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a truth that the majority of the local facilities that are merging financial investments have actually established those in areas of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes feeling.