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Initially, the program is put in an extremely odd and non-helpful bureaucratic place for the stimulation of international investment in the United States. Second, its range is all incorrect. We are distributing way too much for too little of an investment. Additionally, increasing financial backing half a million bucks a tranche is, to say the least, inefficient.


The local centers, with their half-million schemes, basically undercut the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, need to have to do with developing business entities, not passive investments. It must be concerning developing real jobs, not clarify estimations about the indirect development of work, which is now component of the legislation.


Perhaps that is one of the reasons that it has actually failed time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too full of intermediaries, both public and private. The program has greater than its share of scandals, which I will certainly obtain into later on if any person is interested.


This is an agency that enjoys to state yes to candidates, however as the table in my statement shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually talked around a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and forever reason

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Seventh, in this program visas go to people who could not get them otherwise and to people whose organized financial investment is in fact less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Let me broaden on among my monitorings.


My estimate based upon the financiers' environment-friendly card applications submitted 2 years after the very first financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not offer the kind of information that we could 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 analytical base, the preliminary applications of prospective immigrant investors, USCIS is telling journalists that the degree of investment in the just-concluded year was about $1.2 image source billion. Allow us accept that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and concerns. [The prepared statement of David North shows up as a submission for the record.] Chairman Leahy. Thanks. Our following 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 team.




Divine functioned as Chief Counsel of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Supervisor. He has worked extensively with the EB-5 program in personal technique. He was chosen, as I recognize, vice president of the Organization to Spend in U.S.A., the nationwide market association of local facilities.


Divine, we are pleased to have you below. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator 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 every year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Particularly as USCIS, the firm that supervises the program, has actually been making the guidelines more clear and the procedures more sensible and clear for the individuals that are organizing financial investments and for the financiers who are investing, even more people have actually wanted and able to place initiative and cash into the process to locate great projects and establish them, and afterwards more capitalists have actually been willing to spend their cash and take the danger and utilize the cash to produce the tasks that is the factor of the advice program.

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These projects do not linger forever, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


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


The process takes a great while to work page up a job and afterwards to get the investors approved. And they do not want their cash streaming through until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently preventing the growth of tasks.

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I would love to make clear that the Regional Center Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 legislation that becomes part of the code. It simply is a fact that most of the regional facilities that are merging investments have established those in places of high joblessness or in backwoods where half- million-dollar financial investments are enabled, and that makes feeling.