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The program is placed in a very weird and non-helpful administrative location for the excitement of worldwide financial investment in the United States. We are giving away also much for as well little of a financial investment.


The local facilities, with their half-million plans, basically undercut the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to have to do with developing company entities, not easy financial investments. It needs to have to do with developing genuine work, not elaborate computations regarding the indirect development of work, which is currently component of the regulations.


Perhaps that is just one of the reasons that it has actually fallen short year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will get involved in later on if anyone is interested.


This is a company that loves to say yes to candidates, but as the table in my statement shows, USCIS police officers have much more difficulty with EB-5 applications than others. I think that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high rates of internal denials in this program and for great reason

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Seventh, in this program visas most likely to individuals who can not obtain them differently and to individuals whose organized investment is in fact less, according to the Federal Reserve, than the typical mean total assets of all American families in 2007. Allow me broaden on one of my monitorings.


My price quote based on the financiers' copyright applications filed 2 years after the very first investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not provide the type of information that we might use on this.


For every $100 of raised international financial investment that year, the EB program contributed one cent. Under a far more unsteady analytical base, the first applications of would-be immigrant investors, USCIS is informing reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I expect your remarks and inquiries. [The prepared declaration of David North looks like an entry for the record.] 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 company's migration method team.




Divine offered as Principal Advise of the USA Citizenship and Immigration Providers from July 2004 up until November Recommended Site 2006, the year in which he was Performing Director, and after that Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program in private practice. He was elected, as I understand, vice head of state of the Organization to Invest in United States, the national sector association of regional.


Divine, we are pleased to have you right here. Please go on, sir. STATEMENT 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, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, yet it is growing and getting towards that. Specifically as USCIS, the firm that manages the program, has actually been making the guidelines more clear and the processes extra logical and clear for the people who are organizing investments and for the investors who are spending, even more individuals have been eager and able to place effort and cash right into the process to find great jobs and establish them, and afterwards a lot more investors have actually agreed to invest their cash and take the threat and utilize the cash to produce the jobs that is read here the factor of the program.

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These tasks do not wait about forever, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, actually, they are prepared to deny applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to function up a job and afterwards to get the investors approved. And they do not desire their money moving through up until they have been authorized. And the specter of the expiry of this Regional Center Program in September is currently preventing the advancement of jobs.

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I want Read Full Report to clarify that the Regional Center Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 legislation that becomes part of the code. It just is a fact that a lot of the local facilities that are pooling investments have set those instead of high joblessness or in backwoods where half- million-dollar investments are permitted, and that makes sense.