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Initially, the program is positioned in a very odd and non-helpful administrative area for the stimulation of global investment in the United States. Second, its scale is all incorrect. We are distributing way too much for too small of an investment. Further, increasing financial backing fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional facilities, with their half-million plans, essentially damaged the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should have to do with developing service entities, not passive financial investments. It must be about creating real jobs, not elaborate estimations concerning the indirect development of jobs, which is currently part of the legislation.


Possibly that is just one of the reasons that it has failed time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well full of intermediaries, both public and personal. The program has even more than its share of detractions, which I will certainly get involved in later if anyone is interested.


This is a firm that likes to say yes to candidates, yet as the table in my statement shows, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that no one has truly spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals who could not get them any other method and to individuals whose scheduled financial investment is actually less, according to the Federal Book, than the typical mean web well worth of all American family members in 2007. Allow me increase on among my monitorings.


My price quote based upon the financiers' environment-friendly card applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not provide the kind of data that we could use on this.


So for every $100 of raised international investment that year, the EB program added one dime. Under a a lot more wobbly analytical base, the initial applications of potential immigrant financiers, USCIS is informing journalists that the level of investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thanks for listening to me. I expect your comments and inquiries. [The ready declaration of David North shows up as a submission for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration technique group.




Divine acted as Principal Guidance of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Replacement Director. He has worked thoroughly with the EB-5 program secretive technique. He was elected, as I recognize, vice president of the Association to Spend in United States, the nationwide sector association of regional.


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


At most, if all 10,000 slots were utilized, it would be 1 percent of the immigration every year to the USA. see this site It is not near that yet, however it is growing and getting toward that. Especially as USCIS, the firm that supervises the program, has actually been making the regulations more clear and the processes more sensible and clear for individuals that are arranging investments and for the investors that are investing, more people have actually agreed and able to put initiative and cash into the process to find good projects and establish them, and then extra capitalists have wanted to invest their cash and take the threat and use the cash to develop the jobs that is the factor of the program.

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These jobs do not wait about permanently, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. web link That does not imply that they are unwinding their analysis, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was discussed


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


The process takes an excellent while to develop a job and after that to get the capitalists authorized. And they do not want their cash flowing through until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of projects.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It just is a reality that most of the regional centers that are pooling investments have actually set those in places of high unemployment or in rural areas where fifty percent- million-dollar investments go now are enabled, which makes good sense.