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The program is positioned in an extremely strange and non-helpful bureaucratic location for the excitement of international financial investment in the United States. Second, its range is all wrong. We are providing away as well much for also tiny of an investment. Additionally, raising endeavor resources fifty percent a million bucks a tranche is, to state the least, ineffective.


The regional facilities, with their half-million systems, basically undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to be about creating company entities, not passive financial investments. It ought to have to do with creating actual jobs, not elaborate calculations concerning the indirect development of jobs, which is now component of the regulation.


Probably that is just one of the reasons that it has stopped working every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also full of intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will enter later if anyone is interested.


This is a company that loves to state yes to candidates, but as the table in my statement shows, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and for great reason

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Seventh, in this program visas go to individuals that can not get them differently and to individuals whose organized financial investment is in fact less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Allow me broaden on among my observations.


My estimate based upon the capitalists' environment-friendly card applications submitted 2 years after the initial financial 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 provide the kind of data that we can use on this.


For every $100 of increased international financial investment that year, the EB program contributed one cent. Under a far more shaky statistical base, the preliminary applications of potential immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I anticipate your comments and questions. [The ready declaration of David North shows up as a submission 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 migration method team.




Divine worked as Chief Guidance of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has functioned thoroughly i was reading this with the EB-5 program secretive practice. He was elected, as I understand, vice president of the Association to Invest in USA, the nationwide market organization of local.


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 PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is growing and obtaining towards that. Especially as USCIS, the firm that looks after these details the program, has been making the guidelines clearer and the procedures more sensible and clear for individuals that are arranging investments and for the financiers that are investing, even more individuals have been ready and able to put effort and money right into the process to locate great tasks and develop them, and after that extra investors have actually agreed to spend their cash and take the danger and make use of the cash to develop the jobs that is the point of the program.

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These jobs do not wait around for life, and USCIS comprehends that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. Get More Information That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they are ready to reject applications that are not certifying. And they do so, as was stated


The regional facility component of the program is not. It becomes part of an appropriations expense that was established in 1992, and because then that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes an excellent while to develop a job and after that to get the capitalists accepted. And they do not want their money flowing with up until they have been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the growth of projects.

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I wish to make clear that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 regulation that is part of the code. It simply is a fact that many of the local facilities that are merging financial investments have set those instead of high joblessness or in country areas where half- million-dollar financial investments are permitted, which makes good sense.