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The program is put in a very odd and non-helpful governmental place for the stimulation of global financial investment in the United States. We are giving away too much for as well little of a financial investment.


The regional centers, with their half-million systems, basically undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must have to do with producing service entities, not easy financial investments. It must be concerning producing genuine tasks, not clarify estimations concerning the indirect production of jobs, which is currently component of the regulations.


Possibly that is among the factors why it has actually fallen short year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and personal. The program has more than its share of detractions, which I will enter later on if any person is interested.


This is an agency that enjoys to say yes to applicants, yet as the table in my testimony shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and completely factor

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Seventh, in this program visas most likely to people who might not get them any various other method and to individuals whose organized financial investment is in fact much less, according to the Federal Book, than the typical mean web worth of all American households in 2007. Let me expand on one of my monitorings.


My price quote based upon the capitalists' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not supply the sort of data that we could utilize on this.


So for every single $100 of raised international financial investment that year, the EB program contributed one penny. Under a a lot more shaky statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thanks for listening to me. I eagerly anticipate your comments and concerns. [The prepared click here 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 firm's migration method team.




Divine acted as Principal Counsel of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has actually worked extensively with the EB-5 program in exclusive method. He was elected, as I comprehend, vice president of the Association to Spend in United States, the national sector association of local.


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


At most, if all 10,000 slots were used, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the agency that supervises the program, has been making the rules clearer and the processes extra logical and clear for individuals that are arranging financial investments and for the capitalists who are investing, more people have actually wanted and able to put effort and cash right into the process to locate great tasks and establish them, and then a lot more financiers have been ready to invest their cash and take the threat and use the money to create the jobs that is the point of the program.

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These tasks do not wait around forever, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The local facility part of the program is not. It is component of an appropriations expense that was passed in 1992, and given that then that program has actually been prolonged five 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 day of expiry in September.


The procedure takes a great while to develop a task and after that to obtain the capitalists approved. And they do not desire their cash streaming with till they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already dissuading the growth of jobs.

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I wish to make clear that the Regional Facility 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 regulation that is component of the code. It simply is a reality that most of the local facilities that are pooling financial investments have actually established those instead of high unemployment or in rural locations where fifty percent- million-dollar financial investments are allowed, which makes sense.