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The program is put in a really weird and non-helpful bureaucratic location for the stimulation of worldwide financial investment in the United States. We are offering away also much for too small of a financial investment.


The local centers, with their half-million systems, basically undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must have to do with creating organization entities, not passive investments. It needs to have to do with creating actual tasks, not elaborate computations about the indirect production of jobs, which is currently part of the regulation.


Perhaps that is one of the reasons it has fallen short time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will enter later if anyone is interested.


This is an agency that likes to claim yes to applicants, however as the table in my testimony shows, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has truly discussed much. EB5 Regional Center Program. There are high prices of internal denials in this program and completely reason

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Seventh, in this program visas go to people who could not get them differently and to individuals whose organized financial investment is in fact much less, according to the Federal Get, than the average mean total assets of all American households in 2007. Let me broaden on one of my observations.


My quote based upon the capitalists' copyright applications filed 2 years after the first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not provide the kind of data that we could use on this.


For every $100 of increased foreign financial investment that year, the EB program added one cent. Under a a lot more unsteady statistical base, the first applications of potential immigrant financiers, USCIS is telling journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your comments and concerns. [The ready declaration 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 migration practice group.




Divine functioned as Principal Advise of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Supervisor. He has actually functioned extensively with the EB-5 description program in personal method. He was elected, as I comprehend, vice president of the Association to Spend in U.S.A., the nationwide industry organization of regional.


Divine, we are delighted to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if address all 10,000 slots were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and getting toward that. Specifically as USCIS, the company that oversees the program, has been making the rules clearer and the procedures much more sensible and clear for individuals that are organizing financial investments and for the financiers who are spending, even more people have actually been willing and able to place initiative and money into the procedure to find great jobs and establish them, and after that extra investors have wanted to spend their cash and take the danger and make use of the cash to produce the work that is the factor of the program.

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These jobs do not wait about for life, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was mentioned


The regional center component of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and because then that program has actually been prolonged 5 times for 19 years. It is time additional hints for it to be permanent, and it requires to be done now and not nearer to the day of expiry in September.


The process takes an excellent while to develop a job and after that to obtain the investors accepted. And they do not want their money moving through till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the advancement of tasks.

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I want to clear up 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 becomes part of the code. It simply is a reality that most of the regional facilities that are merging financial investments have established those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes feeling.