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The program is placed in an extremely weird and non-helpful governmental place for the stimulation of worldwide financial investment in the United States. We are offering away as well much for also small of a financial investment.


The regional centers, with their half-million plans, basically damaged the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should have to do with producing service entities, not easy financial investments. It needs to have to do with creating actual work, not specify estimations concerning the indirect production of jobs, which is now component of the regulation.


Probably that is just one of the reasons it has failed time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of middlemen, both public and personal. 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 enjoys to claim yes to applicants, but as the table in my testament reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually talked around much. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas go to individuals that could not get them otherwise and to individuals whose planned financial investment is actually less, according to the Federal Reserve, than the average mean internet worth of all American households in 2007. Let me expand on among my observations.


My estimate based upon the financiers' permit applications submitted 2 years after the first financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not give the type of data that we can utilize on this.


So for each $100 of enhanced international investment that year, the EB program contributed one dime. Under a far more wobbly statistical base, the preliminary applications of would-be immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I expect your remarks and concerns. [The prepared declaration of David North shows up as an entry 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 immigration technique team.




Divine worked as Principal Advice of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Replacement explanation Director. He has actually functioned extensively with the EB-5 program in personal practice. He was chosen, as I recognize, vice head of state of the Association to Spend in USA, the national market association of regional.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, but it is growing and obtaining toward that. Especially as USCIS, the firm that looks after the program, has actually been making the rules more clear and the procedures much more sensible and clear for the individuals that are organizing investments and for the investors who are investing, even more individuals have agreed and able to put effort directory and cash right into the procedure to discover excellent tasks and develop them, and then extra investors have agreed to invest their money and take the risk and use the cash to develop the tasks that is the factor of the program.

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These projects do not linger for life, and USCIS comprehends that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, in reality, they prepare to deny applications that are not certifying. And they do so, as was mentioned


The regional facility component of the program is not. It belongs to an appropriations expense that was established in 1992, and considering that then that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a great while to develop a job and after that to get the financiers authorized. And they do not desire their money streaming via until they have actually been approved. And the specter see of the expiry of this Regional Facility Program in September is currently discouraging the advancement of tasks.

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I would love to make clear that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It just is a reality that most of the regional centers that are pooling investments have actually established those in places of high joblessness or in rural locations where half- million-dollar financial investments are allowed, and that makes good sense.