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The program is put in an extremely strange and non-helpful governmental location for the stimulation of international investment in the United States. We are providing away also much for also small of an investment.


The regional centers, with their half-million schemes, essentially damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to have to do with producing company entities, not easy investments. It should have to do with creating actual tasks, not elaborate computations concerning the indirect creation of jobs, which is currently component of the regulations.


Perhaps that is among the reasons why it has actually failed every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too filled up with intermediaries, both public and personal. The program has even more than its share of detractions, which I will certainly get into later on if any person is interested.


This is an agency that likes to say yes to applicants, however as the table in my testimony shows, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that no one has actually truly discussed much. EB5 Regional Center Program. There are high prices of interior rejections in this program and completely reason

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Seventh, in this program visas go to individuals that might not obtain them otherwise and to people whose planned financial investment is really less, according to the Federal Book, than the average mean total assets of all American families in 2007. Let me expand on among my monitorings.


My quote based on the financiers' permit applications submitted 2 years after the initial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not give the sort of data that we can make use of on this.


For every $100 of enhanced foreign financial investment that year, the EB program added one penny. Under a far more shaky statistical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I look ahead to your comments and questions. [The prepared statement of David North shows up as a submission for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique team.




Divine worked as Chief Guidance of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Director. He has worked extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice president of the Organization to Invest in USA, the nationwide market organization of regional facilities.


Divine, we are pleased to have you right here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, but it is expanding and obtaining towards that. Specifically as USCIS, the company that looks after the program, has been making the rules more clear and the procedures a lot more rational and clear for individuals who are arranging financial investments and for the capitalists who are investing, more people have been willing and able to place effort and money right into the procedure to find great jobs and develop them, and after that much more capitalists have actually been ready to invest their cash and take the risk and utilize the cash to develop the tasks that is the factor of the program.

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These jobs do not Get the facts linger forever, and USCIS comprehends that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It is part of an appropriations bill that was passed in 1992, and ever since that program has actually been extended five 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 day of expiration in September.


The process takes an excellent while to develop a task and after that to obtain the investors accepted. And they do not want their cash moving through until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already inhibiting the advancement of tasks.

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I would love to clear up that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a check over here function of the regular EB-5 regulation that becomes part of the code. It try this just is a truth that the majority of the regional facilities that are pooling financial investments have established those in locations of high unemployment or in country locations where fifty percent- million-dollar investments are permitted, and that makes good sense.