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The program is placed in a very strange and non-helpful bureaucratic area for the stimulation of global investment in the United States. We are offering away too much for too small of an investment.


The regional centers, with their half-million schemes, essentially undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with developing organization entities, not easy financial investments. It ought to have to do with creating genuine jobs, not elaborate calculations concerning the indirect development of jobs, which is now part of the legislation.


Perhaps that is just one of the reasons it has stopped working year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too full of middlemen, both public and exclusive. The program has even more than its share of scandals, which I will get into later on if anybody is interested.


This is a company that loves to state yes to candidates, however as the table in my statement reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I think that is something that no one has truly discussed much. EB5 Regional Center Program. There are high rates of internal rejections in this program and for excellent reason

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Seventh, in this program visas most likely to people who might not get them differently and to individuals whose scheduled investment is really much less, according to the Federal Reserve, than the typical mean web worth of all American families in 2007. Allow me broaden on one of my observations.


My price quote based upon the financiers' copyright applications submitted 2 years after the first financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not offer the type of information that we can utilize on this.


So for every $100 of enhanced foreign financial investment that year, the EB program contributed one dime. Under a far more unsteady analytical base, the first applications of potential immigrant financiers, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you go to my site for listening to me. I anticipate your comments and inquiries. [The prepared declaration of David North looks like an entry for the document.] 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 method team.




Divine acted as Chief Counsel of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has functioned extensively with the EB-5 program secretive technique. He was chosen, as I understand, vice president of the Organization to Spend in USA, the nationwide industry association of regional.


Divine, we are thrilled to have you below. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, but it is expanding and obtaining towards that. Specifically as USCIS, the agency that looks after go to this web-site the program, has actually been making the rules clearer and the procedures a lot more logical and clear for the individuals that are arranging investments and for the investors who are spending, more people have agreed and able to place initiative and money right into the process to find good projects and establish them, and afterwards more investors have been prepared to spend their money and take the risk and utilize the cash to produce the work that is the point of the program.

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These jobs do not linger 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 relaxing their analysis, and, in reality, they prepare to deny applications that are not qualifying. And they do site so, as was discussed


The local center component of the program is not. It becomes part of an appropriations expense that was passed in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes a great while to work up a task and then to obtain the investors approved. And they do not desire their money moving through till they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is already dissuading the advancement of jobs.

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I would like to clarify that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 legislation that belongs to the code. It just is a reality that a lot of the regional facilities that are merging financial investments have actually established those instead of high joblessness or in backwoods where half- million-dollar financial investments are permitted, which makes good sense.