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The program is positioned in a very odd and non-helpful administrative place for the stimulation of international investment in the United States. We are offering away as well much for too tiny of an investment.


The local centers, with their half-million systems, essentially damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must have to do with creating company entities, not passive investments. It must have to do with creating real work, not specify computations concerning the indirect development of work, which is currently component of the regulations.


Maybe that is among the reasons it has fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will certainly get involved in later on if anyone is interested.


This is a company that loves to say yes to applicants, yet as the table in my testament shows, USCIS officers have a lot more problem with EB-5 applications than others. I think that is something that no one has actually really talked around much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever factor

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Seventh, in this program visas go to individuals who could not obtain them otherwise and to people whose scheduled financial investment is actually much less, according to the Federal Reserve, than the ordinary mean total assets of all American households in 2007. Allow me expand on among my observations.


My quote based upon the investors' copyright applications filed 2 years after the initial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not offer the kind of information that we can utilize on this.


So for each $100 of enhanced foreign financial investment that year, the EB program contributed one penny. Under a far more shaky analytical base, the initial applications of prospective immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year see this site was regarding $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I eagerly anticipate your comments and concerns. [The ready statement of David North looks like an entry for the document.] 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 immigration practice team.




Divine functioned as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 up until November view 2006, the year in which he was Acting Supervisor, and then Performing Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program in personal practice. He was chosen, as I comprehend, vice president of the Organization to Purchase U.S.A., the nationwide sector organization of regional centers.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 ports were used, it would certainly be 1 percent of the immigration yearly to the USA. 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 regulations clearer and the processes a lot more rational and clear for individuals who are arranging investments and for the financiers who are investing, even more people have actually wanted and able to place initiative and cash into the procedure to discover great projects and develop them, and after that more investors have actually agreed to spend their money and take the danger and use the cash to develop the work that is the factor of the program.

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These jobs do not wait about for life, and USCIS comprehends that and are attempting to speed up the program, this speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, in reality, they prepare to refute applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to work up a task and afterwards to get the capitalists approved. And they do not desire their cash streaming through up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is currently discouraging the advancement of projects.

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I wish to make clear that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It simply is a truth that the majority of the regional centers that are pooling investments have set those in places of high unemployment or in rural areas where fifty percent- million-dollar financial investments are permitted, which makes good sense.