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The program is put in a very strange and non-helpful administrative area for the excitement of global financial investment in the United States. We are giving away too much for too little of a financial investment.


The regional facilities, with their half-million plans, essentially damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should have to do with producing organization entities, not easy investments. It should be concerning developing genuine jobs, not specify calculations regarding the indirect production of tasks, which is now part of the regulation.


Maybe that is among the factors why it has stopped working time after time to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also filled with intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will certainly obtain into later if any person is interested.


This is a firm that enjoys to claim yes to applicants, yet as the table in my testimony shows, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that no one has really discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely reason

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Seventh, in this program visas go to people who can not obtain them differently and to people whose scheduled financial investment is in fact much less, according to the Federal Reserve, than the typical mean net well worth of all American households in 2007. Let me increase on one of my monitorings.


My estimate based upon the capitalists' eco-friendly card applications filed 2 years after the initial financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not supply the sort of information that we could utilize on this.


So for every $100 of increased foreign financial investment that year, the EB program contributed one cent. Under a much a lot more wobbly statistical base, the preliminary applications of would-be immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I eagerly anticipate your remarks and inquiries. [The ready declaration of David North appears as an entry for the record.] 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 company's migration technique team.




Divine acted as Principal Guidance of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program in personal technique. He was chosen, as I understand, vice president of the Association to Purchase USA, the national industry organization of regional facilities.


Divine, we are pleased to have you below. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration each year to the United States. It is not near that yet, but it important source is expanding and getting towards that. Specifically as USCIS, the agency that supervises the program, has been making the rules more clear and the procedures much more reasonable and clear for the individuals that are organizing investments and for the financiers that are investing, even more people have wanted and able to put effort and money into the process to discover great tasks and create them, and after that extra capitalists have wanted to invest their money and take the danger and use the cash to develop the tasks that is the point of the program.

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These tasks do not linger forever, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It is part of an appropriations expense that was established in 1992, and because view it then that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to work up a job and Your Domain Name after that to obtain the investors accepted. And they do not desire their money streaming with until they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the advancement of jobs.

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I wish to clear up 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 feature of the regular EB-5 legislation that becomes part of the code. It simply is a reality that a lot of the regional facilities that are merging financial investments have actually established those in areas of high unemployment or in rural areas where half- million-dollar investments are allowed, and that makes good sense.