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The program is placed in an extremely weird and non-helpful governmental location for the stimulation of international financial investment in the United States. We are offering away also much for too small of an investment.


The regional centers, with their half-million schemes, basically undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to have to do with producing organization entities, not passive investments. It must be concerning producing real tasks, not clarify computations regarding the indirect creation of jobs, which is currently part of the regulation.


Probably that is just one of the reasons why it has failed time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well loaded with middlemen, both public and private. The program has even more than its share of scandals, which I will get right into later if any person is interested.


This is an agency that likes to state yes to candidates, but as the table in my testament shows, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that nobody has truly discussed a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and for good factor

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Seventh, in this program visas go to individuals who can not obtain them any kind of other way and to people whose organized investment is really much less, according to the Federal Book, than the ordinary mean internet well worth of all American family members in 2007. Allow me expand on among my monitorings.


My estimate based on the investors' permit applications filed 2 years after the initial financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not offer the type of data that we could use on this.


For every $100 of raised foreign financial investment that year, the EB program added one cent. Under a much more shaky statistical base, the first applications of potential immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for listening to me. I eagerly anticipate your comments and inquiries. [The prepared statement of David North appears as an entry 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 company's migration technique group.




Divine served as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive technique. He was elected, as I understand, vice president of the Organization to Spend in U.S.A., the nationwide industry organization of regional.


Divine, we are happy to have you More about the author right here. Please go on, sir. DECLARATION 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. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were utilized, it would be 1 percent of the migration annually to the United States. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the company that manages the program, has actually been making the policies clearer and the procedures a lot more reasonable and clear for the individuals that are organizing investments and for the financiers who are spending, even more individuals have agreed and able to put initiative and money right into the procedure to find great jobs and create them, and after that extra financiers have actually agreed to spend their cash and take the threat and use the money to produce the work that is the point of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, actually, they prepare to deny applications that are not certifying. And they do so, index as was pointed out


The local facility component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has actually been expanded 5 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 expiry in September.


The process takes a good while to develop a job and after that to obtain the investors accepted. And they do not desire their money moving via up until they look here have been approved. And the specter of the expiration of this Regional Center Program in September is currently dissuading the development of jobs.

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I would love to clarify that the Regional Center 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 simply is a reality that most of the regional centers that are pooling investments have established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes good sense.