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The program is placed in a very weird and non-helpful bureaucratic location for the excitement of international investment in the United States. We are providing away too much for also small of a financial investment.


The regional facilities, with their half-million systems, basically damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should have to do with creating company entities, not passive financial investments. It ought to have to do with creating actual tasks, not elaborate calculations concerning the indirect development of jobs, which is currently component of the regulations.


Possibly that is just one of the reasons that it has fallen short time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will get involved in later on if anybody is interested.


This is a company that loves to state yes to applicants, however as the table in my testament reveals, USCIS police officers have far more problem with EB-5 applications than others. I think that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for good reason

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Seventh, in this program visas go to people who can not obtain them any type of other way and to individuals whose planned investment is really less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Let me broaden on one of my observations.


My price quote based on the financiers' eco-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not provide the sort of data that we can use on this.


For every $100 of boosted foreign financial investment that year, the EB program contributed one cent. Under a far more wobbly statistical base, the first applications of potential immigrant capitalists, USCIS is informing reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I anticipate your remarks and inquiries. [The ready declaration of David North shows up as a submission for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, blog Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique team.




Divine worked as Chief Advice of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has worked extensively with the EB-5 program in personal practice. He was chosen, as I comprehend, vice president of the Association to Spend in USA, the national sector association of regional.


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


At most, if all 10,000 slots were made use of, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Specifically as USCIS, the firm that manages the program, has been making the policies clearer and the processes much more reasonable and clear for the individuals that are arranging financial investments and for the capitalists who are investing, even more people have been eager and able to put effort and money into the procedure to find good jobs and establish them, and afterwards a lot more investors have actually wanted to invest their cash and take the risk and make use of the cash to develop the jobs that is the point of see this here the program.

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These jobs do not wait around for life, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, in truth, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The local center part of the program is not. It belongs to an appropriations expense that was passed in 1992, and because then that program has been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to develop a project and after that to get the capitalists authorized. And they do not want their cash moving via up until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the advancement of jobs.

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I would love to make clear that the Regional Center Program is not the same as the half-million-dollar thing. The concept 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 fact that a lot of the local centers that are merging investments have actually set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes sense.