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The program is put in a really weird and non-helpful governmental location for the stimulation of worldwide financial investment in the United States. We are giving away as well much for also little of a financial investment.


The regional centers, with their half-million schemes, basically undercut the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must be regarding developing business entities, not passive financial investments. It should be concerning producing actual tasks, not elaborate computations about the indirect development of jobs, which is currently component of the regulations.


Probably that is among the reasons that it has failed time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of intermediaries, both public and private. The program has even more than its share of detractions, which I will get involved in later if anybody is interested.


This is a firm that likes to say yes to applicants, yet as the table in my testament shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has actually spoken around much. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever reason

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Seventh, in this program visas go to people who might not obtain them otherwise and to people whose organized financial investment is actually less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Allow me expand on one of my observations.


My estimate based on the investors' permit applications filed 2 years after the very first financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not give the sort of data that we might make use of on this.


So for every $100 of boosted foreign financial investment that year, the EB program contributed one dime. Under a far more wobbly statistical base, the first applications of potential immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for listening to me. I look ahead to your comments and concerns. [The ready declaration of David North looks like a submission 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 worked as Chief Guidance of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in personal practice. He was elected, as I recognize, vice president of the Association to Invest in USA, the nationwide industry association of regional.


Divine, we are thrilled to have you 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, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, however it is growing and getting towards that. Particularly as USCIS, the firm that supervises the program, has actually been making the rules more clear and the procedures a lot more rational and clear for individuals that are organizing financial investments and for the investors that are spending, even more people have been eager and able to put effort and money right into the procedure to find great tasks and develop them, and after that extra financiers have actually agreed to invest their money and take the danger and utilize the cash to produce the tasks that is the factor of the program.

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These tasks do not linger for life, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, as a matter of fact, they are ready to reject applications that are not certifying. And they do so, as was discussed


The regional center part of the program is not. It belongs to an appropriations costs that was enacted in 1992, and since then that program has been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to function up a job and after that to obtain the investors approved. And they do not want their money moving with until they have actually been authorized. And the specter of the click here expiration of this Regional Facility Program in September is already preventing the growth of tasks.

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I would love to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 regulation that becomes part of the code. It simply is a reality that a lot of the local facilities that are pooling investments have actually set those in areas of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, which makes good sense.