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


The regional centers, with their half-million plans, basically damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to have to do with creating company entities, not passive investments. It ought to be regarding producing genuine work, not clarify computations regarding the indirect production of work, which is currently component of the regulation.


Probably that is one of the reasons why it has fallen short every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well loaded with intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter later on if anyone is interested.


This is a company that likes to say yes to applicants, yet as the table in my testament reveals, USCIS policemans have a lot more problem with EB-5 applications than others. I believe that is something that no one has actually chatted around much. EB5 Regional Center Program. There are high rates of inner rejections in this program and for great factor

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Seventh, in this program visas go to people that can not get them any kind of other way and to people whose organized financial investment is in fact much less, according to the Federal Reserve, than the ordinary mean web worth of all American families in 2007. Let me broaden on among my monitorings.


My estimate based upon the financiers' 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 concerning $191 million confirmed-- that is my price quote. USCIS does not offer the sort of data that we can utilize on this.


So for every single $100 of raised foreign investment that year, the EB program added one dime. Under a a lot more wobbly statistical base, the first applications of would-be immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thank you for listening to me. I anticipate your remarks and concerns. [The ready declaration of David North shows up as an entry for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice team.




Divine served as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program in exclusive method. He was chosen, as I recognize, vice head of state of the Association to Invest in United States, the national sector organization of regional centers.


Divine, we are delighted to have you right here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were used, it would be 1 percent of the immigration every year to the United States. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the agency that manages the program, has actually been making the policies clearer and the read what he said processes extra sensible and clear for individuals who are organizing investments and for the investors that are spending, more people have been willing and able to place initiative and cash right into the process to find good projects and establish them, and after that extra investors have agreed to invest their money and take the threat and use the money to produce the jobs that is the point of the program.

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These tasks do not linger for life, and USCIS recognizes that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It belongs to an appropriations costs that was established in 1992, and because then that program has been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not address nearer to the date of expiry in September.


The procedure takes a great while to function up a task and then to get the financiers authorized. And they do not want their money flowing via up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the growth of jobs.

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I would love to make clear that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 law that belongs to the Going Here code. It simply is a reality that many of the local centers that are merging financial investments have established those in places of high joblessness or in backwoods where half- million-dollar financial investments are allowed, which makes good sense.