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The program is positioned in a very odd and non-helpful bureaucratic area for the stimulation of international financial investment in the United States. Second, its scale is all wrong. We are handing out way too much for as well tiny of a financial investment. Better, elevating financial backing half a million dollars a tranche is, to claim the least, inefficient.


The local facilities, with their half-million schemes, essentially damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to have to do with creating organization entities, not easy financial investments. It needs to be regarding producing actual jobs, not clarify computations regarding the indirect production of tasks, which is currently component of the legislation.


Possibly that is just one of the reasons why it has failed time after time to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also full of intermediaries, both public and private. The program has greater than its share of detractions, which I will get right into later on if anybody is interested.


This is an agency that likes to say yes to candidates, yet as the table in my testament reveals, USCIS policemans have much extra difficulty with EB-5 applications than others. I think that is something that no one has truly talked around much. EB5 Regional Center Program. There are high rates of inner denials in this program and for great factor

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Seventh, in this program visas most likely to individuals who could not obtain them differently and to individuals whose organized investment is in fact less, according to the Federal Book, than the typical mean web well worth of all American family members in 2007. Let me expand on one of my observations.


My price quote based upon the investors' eco-friendly card applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not provide the sort of data that we might utilize on this.


So for each $100 of raised international investment that year, the EB program added one dime. Under a far more unsteady analytical base, the initial applications of would-be immigrant capitalists, USCIS is informing reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thank you for listening to me. I anticipate your remarks and questions. [The prepared declaration of David North appears as 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 practice group.




Divine acted as Chief Advice of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has functioned extensively with the EB-5 program in exclusive practice. He was chosen, as I recognize, vice president of the Organization to Purchase United States, the national industry organization of local centers.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, however it is growing and obtaining toward that. Specifically as USCIS, the company that oversees the program, has been making the policies clearer and the processes extra rational and clear for the people who are arranging investments and for the capitalists that are investing, even more individuals have agreed and able to place effort and cash into the procedure to find excellent jobs and develop them, additional reading and afterwards a lot more capitalists have been willing to spend Get More Information their money and take the danger and use the money to produce the work that is the factor of the program.

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These jobs do not wait around for life, and USCIS recognizes that and are trying to speed the program, like this speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, actually, they are all set to reject applications that are not certifying. And they do so, as was pointed out


The regional facility part of the program is not. It belongs to an appropriations expense that was established in 1992, and given that then that program has been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes an excellent while to develop a project and then to get the capitalists approved. And they do not desire their money flowing through up until they have been accepted. And the specter of the expiry of this Regional Center Program in September is currently discouraging the advancement of projects.

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I wish to clarify that the Regional Center 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 law that belongs to the code. It simply is a truth that most of the local centers that are merging investments have actually set those instead of high unemployment or in rural locations where half- million-dollar financial investments are enabled, which makes good sense.