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The program is put in a really odd and non-helpful administrative place for the excitement of worldwide financial investment in the United States. We are offering away too much for too tiny of a financial investment.


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 whatsoever, as they perform in Australia, should be about creating company entities, not passive financial investments. It ought to be regarding producing real work, not clarify computations about the indirect creation of tasks, which is now part of the regulation.


Probably that is among the factors why it has stopped working every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well filled up with intermediaries, both public and private. The program has more than its share of rumors, which I will certainly get into later if anyone is interested.


This is a firm that likes to claim yes to applicants, but as the table in my statement shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has really discussed a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and for great reason

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Seventh, in this program visas most likely to people who can not obtain them any kind of various other means and to people whose planned financial investment is really much less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Allow me increase on among my monitorings.


My estimate based on the financiers' permit applications submitted 2 years after the very first investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not supply the kind of data that we might make use of on this.


For every $100 of increased international financial investment that year, the EB program added one dime. Under a a lot more unsteady statistical base, the preliminary applications of prospective immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I look ahead to your remarks and concerns. [The prepared statement of David North shows up as a submission for the document.] 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 migration practice team.




Divine acted as Principal Guidance of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has actually functioned extensively with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Association to Purchase USA, the nationwide market organization of regional centers.


Divine, we are happy to have EB5 Regional Center Program you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, you can try these out CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, however it is growing and obtaining towards that. Particularly as USCIS, the agency that looks after the program, has been making the guidelines clearer and the processes a lot more rational and clear for the individuals that are organizing financial investments and for the investors that are investing, more people have actually agreed and able to place initiative and cash into the process to discover excellent tasks and establish them, and afterwards much more investors have actually wanted to spend their money and take the threat and make use of the money to develop the work that is the point of the program.

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These tasks do not wait about forever, and USCIS understands that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they prepare to deny 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 expense that was passed in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a good while to function up a project and then to obtain the investors accepted. And they do not want their cash flowing through until they have been approved. And the specter of the expiry of this Regional Center Program in September is Visit Website already discouraging the growth of tasks.

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I wish to clarify that the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that is part of the code. It just is a truth that many of the regional centers that are pooling financial investments have set those in locations of high joblessness or in backwoods where half- million-dollar financial investments are enabled, and that makes feeling.