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Initially, the program is put in a very weird and non-helpful bureaucratic area for the stimulation of international investment in the USA. Second, its range is all wrong. We are giving away way too much for also small of a financial investment. Even more, elevating financial backing fifty percent a million dollars a tranche is, to state the least, inefficient.


The local centers, with their half-million schemes, basically damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, need to have to do with creating business entities, not passive financial investments. It needs to have to do with producing genuine jobs, not elaborate calculations about the indirect production of work, which is now part of the legislation.


Possibly that is one of the reasons it has actually failed year after year to reach the legislative 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 personal. The program has even more than its share of rumors, which I will certainly get involved in later if any person is interested.


This is a company that loves to claim yes to applicants, however as the table in my testimony shows, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to individuals who could not obtain them any kind of various other method and to individuals whose planned financial investment is really much less, according to the Federal Reserve, than the ordinary mean net worth of all American families in 2007. Let me increase on one of my monitorings.


My quote based upon the investors' permit applications filed 2 years after the initial 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 price quote. USCIS does not offer the type of data that we can use on this.


So for every $100 of increased foreign investment that year, the EB program contributed one cent. Under a much extra wobbly statistical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling journalists 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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Thanks for listening to me. I anticipate your comments and questions. [The ready declaration of useful reference David North looks like a submission for the document.] Chairman Leahy. Thank you. 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 Principal Advice of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Supervisor. He has actually worked extensively with the EB-5 program in exclusive method. He was elected, as I understand, vice head of state of the Organization to Buy U.S.A., the nationwide market association of regional facilities.


Divine, we are happy to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the firm that oversees the program, has actually been making the regulations clearer and the processes extra reasonable and clear for the individuals who are organizing financial investments and for the capitalists that are spending, even more people have agreed and able to place effort and money right into the process to find excellent projects and develop them, and after that much more investors have wanted to invest their cash and take the risk and use the cash to produce the jobs that is the factor of the program.

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These projects do not linger forever, and USCIS comprehends that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, in fact, they are prepared to refute applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It is component of an appropriations costs that was established in 1992, and additional hints ever since that program has been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to function up a project and after that to get the capitalists approved. And they do not desire their cash flowing through till they have discover this been approved. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the growth of tasks.

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I want to clarify that the Regional Center Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 legislation that becomes part of the code. It simply is a truth that many of the regional facilities that are merging financial investments have established those instead of high joblessness or in rural locations where half- million-dollar investments are allowed, and that makes good sense.