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


The local centers, with their half-million systems, basically damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with producing service entities, not easy investments. It ought to have to do with creating actual work, not clarify computations regarding the indirect development of jobs, which is now part of the regulation.


Probably that is among the reasons it has stopped working time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also full of middlemen, both public and private. The program has even more than its share of detractions, which I will enter later on if any person is interested.


This is a firm that loves to say yes to applicants, yet as the table in my statement shows, USCIS officers have far more trouble with EB-5 applications than others. I assume that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and completely factor

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Seventh, in this program visas most likely to people who might not get them otherwise and to people whose planned investment is actually less, according to the Federal Get, than the typical mean total assets of all American family members in 2007. Allow me broaden on one of my observations.


My price quote based upon the financiers' permit applications filed 2 years after the very first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not give the type of data that we can make use of on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one cent. Under a far more wobbly statistical base, the first applications of prospective immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thank you for listening to me. I look onward to your remarks and concerns. [The prepared declaration of David North looks like an entry 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 firm's immigration technique group.




Divine acted as Chief Advice of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has worked extensively with the EB-5 program in exclusive practice. He was elected, as I understand, vice head of state of the Organization to Spend in United States, the national industry organization of regional facilities.


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


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, however it is growing and getting toward that. Specifically as USCIS, the firm that supervises the program, has actually been making the rules clearer and the processes more reasonable and clear for the people that are organizing investments and for the investors that are investing, here even more individuals have actually agreed and able to place effort and money right into the process to find excellent tasks and create them, and after that a lot more investors have actually agreed to invest their money and take the threat and utilize the money to develop the work that is the factor of the program.

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These jobs do not linger for life, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was stated


The local center component of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to develop a job and afterwards to get the capitalists authorized. And they do not desire their money moving through up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the growth of tasks.

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I wish to make clear 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 function of the normal EB-5 legislation that belongs to the code. It simply is a fact that most of the local centers that are merging financial investments have established those in places of high joblessness or in backwoods where half- million-dollar financial investments are allowed, which makes sense.