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Initially, the program is placed in a really weird and non-helpful bureaucratic place for the excitement of global financial investment in the USA. Second, its range is all incorrect. We are handing out way too much for also little of a financial investment. Even more, raising financial backing half a million dollars a tranche is, to state the least, ineffective.


The local facilities, with their half-million systems, basically damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must be concerning creating service entities, not easy financial investments. It must have to do with developing real tasks, not specify estimations about the indirect production of jobs, which is now part of the legislation.


Maybe that is just one of the reasons it has actually stopped working every year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well full of intermediaries, both public and personal. The program has even more than its share of rumors, which I will certainly obtain right into later if any person is interested.


This is a firm that loves to say yes to applicants, however as the table in my statement reveals, USCIS policemans have much extra problem with EB-5 applications than others. I believe that is something that nobody has actually actually discussed a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and completely factor

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Seventh, in this program visas most likely to people who could not get them differently and to people whose planned investment is really much less, according to the Federal Reserve, than the average mean web well worth of all American families in 2007. Let me increase on among my observations.


My price quote based upon the investors' permit applications filed 2 years after the very first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not provide the sort of information that we could make use of on this.


So for every single $100 of boosted international financial investment that year, the EB program contributed one penny. Under a much more wobbly statistical base, the first applications of prospective immigrant financiers, USCIS is telling 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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Thanks for listening to me. I eagerly anticipate your comments and inquiries. [The ready declaration of David North appears as an entry for the record.] 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 technique group.




Divine worked as Principal Guidance of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has actually worked extensively with the EB-5 program in personal practice. He was chosen, as I understand, vice president of the Organization to Invest in U.S.A., the nationwide industry organization of regional.


Divine, we are delighted to have you here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were used, it would be 1 percent of the migration every year to the USA. It is not near that yet, however it is expanding and obtaining toward that. Specifically as USCIS, the company that oversees the program, has actually been making the policies clearer and the processes much more reasonable and clear for individuals that are organizing investments and for the financiers that are investing, even more people have actually agreed and able to place initiative and money right into the procedure to discover good tasks and create them, and after that much more investors have actually wanted to more info spend their cash and take the danger and utilize the cash to produce the work that is the factor of the program.

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These jobs do not wait around permanently, and USCIS recognizes that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they are all set to reject applications that are not certifying. 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 actually been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a great while to develop a project and afterwards to obtain the financiers approved. And they do not want their money streaming with up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is currently discouraging the advancement of projects.

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I want 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 law that becomes part of the code. It just is a reality that the majority of the regional centers that are pooling financial investments have set those in places of high unemployment or in rural locations where half- million-dollar financial investments are permitted, which makes good sense.