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


The local centers, with their half-million plans, basically undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to be about producing business entities, not passive investments. It ought to be regarding creating real work, not clarify calculations regarding the indirect development of jobs, which is currently component of the regulation.


Possibly that is one of the factors why it has fallen short every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well full of intermediaries, both public and exclusive. The program has more than its share of rumors, which I will enter into later if anybody is interested.


This is an agency that loves to claim yes to candidates, yet as the table in my statement shows, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that no one has actually talked about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals who might not obtain them any various other way and to individuals whose planned investment is actually less, according to the Federal Book, than the typical mean net well worth of all American households in 2007. Allow me increase on among my observations.


My quote based upon the financiers' copyright applications filed 2 years after the initial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not offer the kind of data that we can utilize on this.


For every $100 of raised international investment that year, the EB program added one penny. Under a much more wobbly statistical base, the initial applications of prospective immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I eagerly anticipate your comments and inquiries. [The prepared statement of David North looks like an entry for the record.] Chairman Leahy. Thanks. 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 migration practice group.




Divine acted as Chief Advice of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has actually functioned thoroughly with the EB-5 program in personal technique. He was chosen, as I comprehend, vice president of the Association to Invest in USA, the national market association of regional facilities.


Divine, we are pleased to have you right here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were utilized, it would be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is growing and obtaining towards that. Especially as USCIS, the agency that manages the program, has actually been making the regulations clearer and the processes extra logical and clear for individuals who are arranging financial investments and for the capitalists that are spending, even more people have agreed and able to put effort and money right into the procedure to find great jobs and create them, and afterwards extra capitalists have wanted to spend their money and take the danger and utilize the cash to develop the tasks that is the factor of the program.

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These jobs do not wait about for life, and USCIS comprehends that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, actually, they are prepared to deny applications that are not certifying. And they do so, as was pointed out


The local facility component of the program is not. It is EB5 Regional Center Program component of an appropriations bill that was established in 1992, and since then that program has actually been expanded 5 times for 19 years. It is time for it to be permanent, 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 job and afterwards to obtain the financiers accepted. And they do not desire their cash streaming with until they have been accepted. And the specter of the expiry of this Regional Center Program in September is already discouraging the growth of tasks.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 law that is part of the code. It simply is a fact that the majority of the regional facilities that are pooling financial investments have actually set those instead of high unemployment or in country areas where half- million-dollar investments are enabled, and that makes sense.