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The program is positioned in an extremely odd and non-helpful bureaucratic location for the excitement of worldwide investment in the United States. We are offering away also much for too small of a financial investment.

The local centers, with their half-million systems, basically damaged the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to be regarding creating organization entities, not easy financial investments. It ought to be concerning developing real work, not clarify calculations about the indirect production of jobs, which is now part of the legislation.


Possibly that is just one of the reasons it has stopped working time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will enter later on if anyone is interested.


This is a company that loves to claim yes to applicants, yet as the table in my testimony shows, USCIS officers have a lot extra difficulty with EB-5 applications than others. I think that is something that no one has actually discussed much. 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 go to people who can not obtain them any type of other way and to individuals whose organized financial investment is in fact much less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Allow me broaden on among my observations.


My price quote based on the financiers' permit applications filed 2 years after the very first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not give the kind of information that we can make use of on this.


So for every $100 of increased foreign investment that year, the EB program added one dime. Under a far more shaky statistical base, the preliminary applications of potential immigrant investors, USCIS is informing reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I anticipate your remarks and questions. [The ready declaration 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 firm's immigration practice team.

Divine offered as Chief Advise of the United States Citizenship and Migration Providers you can try this out from July 2004 till November 2006, the year in which he was Acting see page Supervisor, and after that Acting Deputy Director. He has actually functioned extensively with the EB-5 program secretive method. He was chosen, as I recognize, vice head of state of the Organization to Invest in U.S.A., the nationwide market organization of local centers.


Divine, we are happy to have you here. Please proceed, sir. DECLARATION 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. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were used, it would be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is expanding and getting toward that. Particularly as USCIS, the firm that oversees the program, has actually been making the guidelines clearer and the procedures a lot more sensible and clear for the individuals who are organizing financial investments and for the financiers who are investing, more people have agreed and able to put effort and money into the process to find good projects and create them, and after that much more investors have actually agreed to spend their cash and take the danger and use the cash to create the work that is find more the factor of the program.

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These tasks do not wait about forever, and USCIS recognizes that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, in reality, they are prepared to deny applications that are not qualifying. And they do so, as was mentioned

The regional facility part of the program is not. It is component of an appropriations bill 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 now and not nearer to the date of expiration in September.


The process takes an excellent while to develop a job and after that to obtain the capitalists approved. And they do not desire their money flowing with till they have been approved. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the growth of projects.

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I would certainly like to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It just is a fact that most of the local facilities that are pooling investments have actually set those instead of high joblessness or in country locations where fifty percent- million-dollar investments are permitted, which makes sense.