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The program is placed in an extremely odd and non-helpful governmental location for the excitement of international financial investment in the United States. Second, its scale is all incorrect. We are distributing excessive for too small of an investment. Further, elevating financial backing half a million bucks a tranche is, to say the least, ineffective.


The regional facilities, with their half-million systems, basically damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should have to do with creating service entities, not easy financial investments. It should be concerning creating genuine jobs, not elaborate calculations regarding the indirect creation of tasks, which is currently part of the legislation.


Perhaps that is one of the factors why it has stopped working every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also full of middlemen, both public and exclusive. The program has more than its share of detractions, which I will certainly enter into later if anybody is interested.


This is an agency that enjoys to say yes to candidates, yet as the table in my testament shows, USCIS police officers have a lot more problem with EB-5 applications than others. I think that is something that no one has actually actually talked about much. EB5 Regional Center Program. There are high prices of interior denials in this program and for great factor

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Seventh, in this program visas go to people that can not obtain them differently and to individuals whose organized financial investment is really less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Let me expand on one of my observations.


My quote based on the investors' permit applications submitted 2 years after the initial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not supply the kind of information that we can make use of on this.


For every $100 of boosted international financial investment that year, the EB program contributed one penny. Under a much extra wobbly analytical base, the initial applications of would-be immigrant financiers, USCIS is informing journalists that the degree of financial investment in the just-concluded year was about $1.2 billion. Allow us accept that.

What Does Eb5 Regional Center Program Do?

Thanks for paying attention to me. I anticipate your comments and questions. [The check my reference prepared statement of David North looks like an entry for the document.] 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 immigration practice team.




Divine acted as Chief Counsel of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program in exclusive technique. He was elected, as I comprehend, vice head of state of the Association to Purchase U.S.A., the nationwide industry organization of regional facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, view website Senator Grassley, and others.


At the majority of, if all 10,000 slots were used, it would be 1 percent of the immigration annually to the United States. It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the agency that oversees the program, has been making the rules clearer and the procedures extra reasonable and clear for individuals who are arranging financial investments and for the investors who are investing, more people have wanted and able to place initiative and cash into the procedure to find good jobs and establish them, and then a lot more capitalists have actually wanted to invest their cash and take the danger and use the cash to create the work that is the factor of the program.

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


The regional facility component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and given that then that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it needs to read the article be done now and not nearer to the date of expiration in September.


The process takes a great while to function up a project and then to get the financiers authorized. And they do not want their money streaming with until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently preventing the growth of jobs.

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I would love to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It simply is a truth that the majority of the local facilities that are merging financial investments have actually set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes feeling.