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The program is positioned in a very strange and non-helpful administrative area for the stimulation of worldwide financial investment in the United States. Second, its scale is all wrong. We are handing out way too much for as well small of a financial investment. Further, elevating financial backing half a million dollars a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million systems, essentially undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should have to do with producing organization entities, not easy investments. It needs to be regarding developing genuine tasks, not elaborate estimations about the indirect development of tasks, which is currently part of the regulation.


Possibly that is just one of the reasons that it has actually failed every year to reach the legislative goal of 10,000 financial 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 more than its share of rumors, which I will get into later if anybody is interested.


This is a firm that likes to say yes to candidates, yet as the table in my statement shows, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that nobody has actually really chatted around a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and forever reason

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Seventh, in this program visas go to people that might not obtain them otherwise and to individuals whose scheduled investment is really much less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Let me increase on among my observations.


My price quote based upon the investors' permit applications submitted 2 years after the initial financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not give the sort of information that we might utilize on this.


For every $100 of boosted international investment that year, the EB program contributed one cent. Under a far more shaky analytical base, the initial applications of potential immigrant investors, USCIS is telling reporters that the level of financial 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 anticipate your comments and questions. [The prepared declaration of David North shows up as an entry for the record.] Chairman Leahy. Thank you. 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 immigration technique team.




Divine acted as Chief Advice of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Supervisor. He has functioned extensively with the EB-5 program in exclusive method. He was elected, as I understand, vice president of the Organization to Invest in U.S.A., the nationwide market organization of regional facilities.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, however it is growing and obtaining towards that. Specifically as USCIS, the agency that looks after the program, has been making the regulations clearer and the procedures much more sensible and clear for individuals who are arranging investments and for the capitalists who are spending, more individuals have actually been prepared and able to put initiative and money right into the process to locate great tasks and establish them, and after that much more capitalists have been ready to invest their money and take the threat and utilize the cash to create the jobs that is the point of the program.

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These projects do not wait around permanently, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was mentioned


The regional center part of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes a good while to develop a task and after that to obtain the investors accepted. And they do not want their money moving with until they have been authorized. And the specter read more of the expiration of this Regional Center Program in September is already preventing the advancement of tasks.

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I want 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 regular EB-5 regulation that belongs to the code. It just is a fact that most of the regional centers that are merging investments have actually established those in locations of high joblessness or in rural locations where half- million-dollar investments are permitted, and that makes good sense.