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The program is put in a really strange and non-helpful bureaucratic location for the stimulation of international financial investment in the United States. We are providing away as well much for also tiny of a financial investment.


The regional centers, with their half-million plans, basically undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with producing service entities, not easy financial investments. It needs to have to do with creating actual jobs, not specify estimations about the indirect development of tasks, which is currently component of the legislation.


Probably that is among the reasons that it has actually stopped working every year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too loaded with intermediaries, both public and personal. The program has greater than its share of scandals, which I will enter later on if anyone is interested.


This is a company that likes to state yes to candidates, however as the table in my testimony shows, USCIS police officers have a lot more problem with EB-5 applications than others. I assume that is something that nobody has really discussed a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently reason

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Seventh, in this program visas go to individuals who might not obtain them otherwise and to people whose planned financial investment is in fact less, according to the Federal Reserve, than the ordinary mean web well worth of all American family members in 2007. Let me expand on among my observations.


My price quote based upon the investors' permit applications submitted 2 years after the very first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not supply the kind of data that we can utilize on this.


For every $100 of raised international financial investment that year, the EB program contributed one dime. Under a a lot more shaky statistical base, the first applications of would-be immigrant investors, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I expect your comments and inquiries. [The prepared declaration of David North looks like an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine acted as Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and after that Acting Replacement Director. He has functioned thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice head of state of the Association to Spend in United States, the national market association of regional.


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


At most, if all 10,000 slots were used, it would be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the company that supervises the program, has actually been making the regulations clearer and the Click Here procedures much more logical and clear for the people who are arranging my site financial investments and for the investors who are spending, even more individuals have wanted and able to place effort and money right into the procedure to discover good projects and develop them, and after that much more investors have wanted to spend their money and take the risk and use the cash to create the tasks that is the point of the program.

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These jobs do not wait about permanently, and USCIS understands that and are attempting to speed the program, speed 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 facility component of the program is not. It is part of an appropriations expense that was enacted 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 needs to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to work up a project and afterwards to obtain the investors authorized. And they do not desire their money flowing via until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is currently dissuading the development of jobs.

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I would like to make clear that the Regional Center Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 legislation that is part of the code. It simply is a reality that a lot of the local facilities that are pooling financial investments have actually set those in areas of high unemployment or in see post country areas where half- million-dollar investments are enabled, which makes good sense.