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Initially, the program is placed in a really weird and non-helpful bureaucratic location for the stimulation of international financial investment in the USA. Second, its scale is all incorrect. We are distributing excessive for too small of a financial investment. Additionally, elevating financial backing fifty percent a million dollars a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million plans, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must have to do with creating organization entities, not easy financial investments. It should be about developing real jobs, not elaborate computations concerning the indirect creation of tasks, which is currently part of the regulations.


Possibly that is among the factors why it has failed year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too loaded with intermediaries, both public and private. The program has more than its share of rumors, which I will enter later if any person is interested.


This is a firm that likes to say yes to candidates, however as the table in my testament shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually chatted about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and for excellent reason

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Seventh, in this program visas go to people that could not obtain them differently and to people whose scheduled financial investment is in fact much less, according to the Federal Get, than the typical mean total assets of all American family members in 2007. Allow me broaden on among my monitorings.


My quote based upon the capitalists' permit applications submitted 2 years after the very first investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not provide the type of data that we might use on this.


So for each $100 of enhanced international investment that year, the EB program added one penny. Under a a lot more shaky statistical base, the preliminary applications of potential immigrant capitalists, USCIS is informing 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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Thank you for listening to me. I expect your remarks and inquiries. [The ready statement of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice team.




Divine worked as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Director. He has actually functioned extensively with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Association to Buy USA, the nationwide industry association of regional facilities.


Divine, we are thrilled to have you right here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, more info CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were utilized, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is growing and getting towards that. Especially as USCIS, the agency that oversees the program, has actually been making the guidelines more clear and the procedures much more logical and clear for individuals that are organizing financial investments and for the capitalists who are investing, more individuals have actually agreed and able to put initiative and money right into the process to discover good jobs and create them, and after that a lot more financiers have wanted to invest their cash and take the risk and use the cash to create the jobs that is the factor of the program.

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These tasks do not linger for life, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The local center component of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes a great while to develop a job and after that to get the capitalists authorized. And they do not desire their money flowing via up until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the growth of jobs.

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I would such as to make clear that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 legislation that is component of the code. It just is a reality that a lot of the regional centers that are pooling financial investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, and that makes good sense.