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The program is positioned in a very strange and non-helpful administrative location for the excitement of worldwide financial investment in the United States. We are offering away as well much for also small of a financial investment.


The regional centers, with their half-million plans, essentially undercut the extra reasonable 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 producing business entities, not easy financial investments. It should be about creating real work, not elaborate estimations regarding the indirect production of tasks, which is now part of the legislation.


Maybe that is among the reasons it has actually stopped working year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of intermediaries, both public and private. The program has greater than its share of rumors, which I will get involved in later if anybody is interested.


This is a company that enjoys to claim yes to applicants, but as the table in my testimony reveals, USCIS police officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals who might not obtain them otherwise and to individuals whose planned financial investment is in fact much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Allow me broaden on among my observations.


My quote based upon the investors' copyright applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not give the kind of information that we can utilize on this.


For every $100 of enhanced foreign financial investment that year, the EB program contributed one penny. Under a far more wobbly analytical base, the preliminary applications of potential immigrant investors, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I look ahead to your comments and inquiries. [The ready declaration of David North appears as a submission for the record.] Chairman Leahy. Thanks. 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 practice team.




Divine worked as Chief Advice of YOURURL.com the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Director. He has worked thoroughly with the EB-5 program secretive method. He was elected, my review here as I understand, vice president of the Organization to Invest in United States, the national market association of regional facilities.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At most, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the agency that oversees the program, has actually been making the regulations more clear and the procedures extra sensible and clear for the people who are arranging investments and for the investors that are investing, more individuals have actually wanted and able to place effort and cash right into the process to locate great jobs and create them, and then a lot more capitalists have actually wanted to spend their money and take the danger and use the cash to produce the tasks that is the point of the program.

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These projects do not wait about permanently, and USCIS recognizes that and are trying to speed the program, speed the procedure visit the website - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, actually, they are prepared to reject applications that are not certifying. And they do so, as was stated


The local center component of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiry in September.


The process takes a good while to work up a task and after that to get the capitalists accepted. And they do not want their cash moving through till they have been accepted. And the specter of the expiration of this Regional Center Program in September is already preventing the growth of jobs.

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I would love to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It just is a truth that many of the local facilities that are pooling investments have established those instead of high joblessness or in country locations where half- million-dollar investments are permitted, and that makes feeling.