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The program is put in an extremely strange and non-helpful governmental place for the excitement of global investment in the United States. Second, its scale is all incorrect. We are handing out excessive for too tiny of a financial investment. Additionally, elevating financial backing half a million dollars a tranche is, to claim the least, ineffective.

The local facilities, with their half-million schemes, basically undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should be about developing organization entities, not passive financial investments. It needs to have to do with producing genuine jobs, not specify computations regarding the indirect creation of tasks, which is currently component of the regulations.

Maybe that is among the reasons why it has stopped working time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too filled up with intermediaries, both public and private. The program has greater than its share of detractions, which I will certainly enter later on if anybody is interested.

This is an agency that enjoys to say yes to applicants, however as the table in my statement shows, USCIS officers have much a lot more problem with EB-5 applications than others. I assume that is something that no one has actually truly spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely factor

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Seventh, in this program visas go to individuals who can not get them differently and to people whose scheduled financial investment is actually much less, according to the Federal Get, than the average mean net well worth of all American family members in 2007. Let me increase on among my observations.

My quote based on the investors' environment-friendly card applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not provide the sort of information that we can use on this.

For every $100 of enhanced foreign investment that year, the EB program added one dime. Under a far more unsteady analytical base, the first applications of prospective immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for listening to me. I anticipate your comments and concerns. [The ready statement of David North appears as an entry for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice team.


Divine functioned as Chief Advise of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has actually functioned extensively with the EB-5 program in private practice. He was chosen, as I comprehend, vice head of state of the Organization to Buy USA, the national market organization of local centers.

Divine, we are happy to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, 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. Thank you for having me.

At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, however it is expanding and obtaining towards that. Especially as USCIS, the firm that manages the program, has been making the guidelines more clear and the processes a lot more reasonable and clear for the individuals that are arranging financial investments and for the capitalists that are investing, more people have actually wanted and able to put initiative and money into more info the process to find good tasks and create them, and after that more capitalists have been ready to spend their money and take the risk and use the cash to create the tasks that is the factor of the program.

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These projects do not linger forever, and USCIS comprehends that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was stated

The local facility component of the program is not. It is component of an appropriations expense that was passed in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the date of expiry in September.

The process takes an excellent while to develop a task and after that to get the capitalists approved. And they do not desire their money streaming through until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already discouraging the growth of projects.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It just is a truth that many of the regional centers that are merging financial investments have set those instead of high unemployment or in country locations where fifty percent- million-dollar financial investments are allowed, and that makes good sense.

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