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First, the program is positioned in a very strange and non-helpful governmental location for the stimulation of international investment in the United States. Second, its range is all incorrect. We are distributing also much for also little of an investment. Even more, raising financial backing half a million bucks a tranche is, to state the least, ineffective.


The regional facilities, with their half-million schemes, basically damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, should be regarding producing organization entities, not easy investments. It should be regarding developing real tasks, not elaborate computations concerning the indirect production of work, which is now component of the regulation.


Perhaps that is among the reasons it has stopped working time after time to get to the legal objective of 10,000 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 greater than its share of rumors, which I will get involved in later if anyone is interested.


This is a firm that loves to say yes to candidates, but as the table in my statement shows, USCIS policemans have much more problem with EB-5 applications than others. I assume that is something that no one has actually really discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently reason

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Seventh, in this program visas most likely to individuals who could not obtain them any kind of other way and to people whose planned investment is really less, according to the Federal Reserve, than the average mean net worth of all American families in 2007. Let me expand on one of my monitorings.


My price quote based on the capitalists' copyright applications filed 2 years after the very first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not offer the sort of information that we might use on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one dime. Under a far more shaky analytical base, the preliminary applications of would-be immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I expect your comments and inquiries. link [The ready declaration of David North looks like an entry for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.




Divine acted as Principal Guidance of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Director. He has worked thoroughly with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Organization to Buy United States, the national sector association of regional centers.


STATEMENT 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 most, if all 10,000 ports were used, it would be 1 percent of the migration every year to the United States. It is not near that yet, however it is expanding and obtaining toward that. Especially as USCIS, the firm that looks after the program, has actually been making pop over here the regulations clearer and the procedures more reasonable and clear for the individuals who are organizing financial investments and for the financiers who are investing, even more individuals have agreed and able to put effort and money right into the process to find good jobs and create them, and afterwards extra financiers have actually been willing to invest their cash and take the threat and utilize the cash to develop the work that is the factor of the program.

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These tasks do not linger permanently, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, in fact, they are all set to refute applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the see date of expiry in September.


The process takes a good while to work up a task and after that to obtain the investors approved. And they do not want their cash moving through till they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the growth of jobs.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 regulation that becomes part of the code. It just is a reality that many of the local facilities that are merging financial investments have actually set those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, which makes feeling.