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Initially, the program is placed in a really strange and non-helpful governmental location for the excitement of global financial investment in the United States. Second, its scale is all incorrect. We are distributing excessive for too little of an investment. Better, increasing financial backing fifty percent a million dollars a tranche is, to state the least, inefficient.


The regional facilities, with their half-million schemes, basically undercut the much 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, should have to do with creating company entities, not passive investments. It needs to have to do with producing actual tasks, not clarify estimations regarding the indirect development of jobs, which is now part of the regulation.


Perhaps that is one of the factors why it has failed every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with middlemen, both public and private. The program has even more than its share of detractions, which I will enter later if anybody is interested.


This is a firm that enjoys to say yes to candidates, however as the table in my statement reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high rates of interior denials in this program and for excellent factor

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Seventh, in this program visas go to people that could not obtain them otherwise and to people whose organized financial investment is actually much less, according to the Federal Get, than the average mean web well worth of all American families in 2007. Let me increase on among my monitorings.


My estimate based upon the investors' environment-friendly card applications submitted 2 years after the first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not supply the sort of information that we can utilize on this.


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

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Thank you for paying attention to me. I expect your remarks and concerns. [The ready declaration of David North appears as an entry for the document.] 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 company's migration method group.




Divine functioned as Chief Advise of the United States Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and then Acting Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program secretive method. He was elected, as I understand, vice head of state of the Organization to Purchase United States, the nationwide sector association of local facilities.


Divine, we are thrilled to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, but it is expanding and getting toward that. Especially as USCIS, the company that looks after the program, has actually been making the rules clearer and the procedures a lot more sensible and clear for individuals that are organizing investments and for the investors that are spending, more individuals have been eager and able to put effort and money right into the process to locate good jobs and establish them, and after that extra investors have agreed to invest their cash and take the threat and utilize the cash to produce the work that is the factor of the program.

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These jobs do not wait around permanently, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, in fact, they are prepared to reject applications that are not qualifying. And they do so, as was pointed out


The local facility component of the program is not. It is component of an appropriations expense that was enacted in 1992, and given that then that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to work up a job and after that to obtain the financiers accepted. And they do not want their money streaming via up until they have actually been approved. And the specter of the expiration of this website Regional Facility Program in September is currently preventing the development of tasks.

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I want to clear up that the Regional Center Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 regulation that belongs to the code. It simply is a fact that most of the local centers that are merging financial investments have established those in locations of high joblessness or in backwoods where half- million-dollar financial investments are permitted, which makes sense.