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The program is put in a very weird and non-helpful bureaucratic place for the stimulation of global investment in the United States. Second, its range is all wrong. We are handing out excessive for also tiny of an investment. Further, raising financial backing half a million dollars a tranche is, to say the least, ineffective.


The regional centers, with their half-million schemes, essentially damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should have to do with producing organization entities, not passive investments. It must have to do with creating genuine tasks, not clarify computations concerning the indirect creation of jobs, which is now part of the legislation.


Perhaps that is just one of the factors why it has actually stopped working time after time to reach the legislative objective of 10,000 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 detractions, which I will certainly enter into later on if anyone is interested.


This is an agency that loves to say yes to candidates, but as the table in my testimony shows, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that no one has actually really discussed much. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently factor

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Seventh, in this program visas most likely to people who can not get them differently and to people whose scheduled financial investment is in fact less, according to the Federal Reserve, than the typical mean internet worth of all American families in 2007. Let me increase on one of my monitorings.


My estimate based upon the investors' copyright applications submitted 2 years after the initial financial investment-- these are the strong ones that remain and are authorized. 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 could utilize on this.


So for every single $100 of increased foreign financial investment that year, the EB program added one cent. Under a much extra unsteady statistical base, the preliminary applications of prospective immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I anticipate your remarks and inquiries. [The prepared declaration of David North shows up as an entry for the record.] Chairman Leahy. Thanks. 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 technique group.




Divine worked as Principal Advise of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program in exclusive method. He was elected, as I comprehend, vice head of state of the Association to Spend in USA, the national market association of regional centers.


Divine, we are happy to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND click here BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were made use of, it would be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the company that looks after the program, has actually been making the regulations clearer and the processes extra sensible and clear for the individuals who are organizing investments and for the investors that are investing, more people have agreed and able to place initiative and cash into the process to find excellent projects and develop them, and after that more capitalists have wanted to spend their money and take the danger and make use of the cash to produce the tasks that is the point of the program.

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These tasks do not wait around permanently, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, in truth, they prepare to refute applications that are not certifying. And they do so, as was stated


The regional center part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes an excellent while to develop a project and afterwards to get the capitalists accepted. And they do not want their cash moving with until they have been authorized. And the specter of the expiry of this Regional Center Program in September is already inhibiting the growth of jobs.

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I wish to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 regulation that is component of the code. It simply is a fact that many of the regional facilities that are merging financial investments have established those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are permitted, and that makes sense.