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The program is positioned in an extremely weird and non-helpful administrative location for the excitement of global financial investment in the United States. We are providing away as well much for too tiny of an investment.


The local centers, with their half-million plans, essentially damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should be about developing service entities, not easy financial investments. It needs to be about creating actual jobs, not specify estimations concerning the indirect creation of jobs, which is now part of the regulation.


Possibly that is just one of the reasons it has fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too filled up with intermediaries, both public and exclusive. The program has even more than its share of detractions, which I will certainly enter into later on if any person is interested.


This is a firm that enjoys to claim yes to candidates, however as the table in my statement shows, USCIS policemans have far more problem with EB-5 applications than others. I think that is something that nobody has actually really discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and for excellent reason

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Seventh, in this program visas go to individuals that could not get them any other means and to people whose scheduled financial investment is in fact much less, according to the Federal Get, than the average mean web well worth of all American families in 2007. Allow me increase on one of my observations.


My estimate based upon the capitalists' environment-friendly card applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not give the kind of data that we can use on this.


For every $100 of enhanced international financial investment that year, the EB program added one penny. Under a a lot more unsteady statistical base, the initial applications of prospective immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year had to find here do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I expect your comments and inquiries. [The ready statement of David North appears as a submission 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 firm's immigration technique team.




Divine functioned as Chief Advise of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Director. He has functioned thoroughly with the EB-5 program in personal practice. He was chosen, as I recognize, vice head of state of the Association to Purchase U.S.A., the national industry association of regional centers.


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


At many, if all 10,000 slots were made use of, it would be 1 percent of the migration every year to the United States. It is not near that yet, however it is growing and obtaining toward that. Specifically as USCIS, the company that manages the program, has actually been making the guidelines clearer and the processes more rational and clear for the individuals who are arranging financial investments and for the financiers that are spending, even more people have wanted and able to place initiative and cash right into the procedure to discover good tasks and create them, and after that more investors have actually been ready to invest their money and take the risk and make use of the cash to develop the jobs that is the point of the program.

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These jobs do not linger for life, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, in reality, they prepare to reject applications that are not certifying. And they do so, as was stated


The local center part of the program is not. It is part of an appropriations expense that was established in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not special info nearer to the date of expiry in September.


The process takes a good while to function up a job and after that to obtain the financiers accepted. And they do not want their cash moving with up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of jobs.

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I would such as to clear up that the Regional Center Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 legislation that is part of published here the code. It just is a reality that a lot of the regional centers that are merging financial investments have actually established those in locations of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, which makes feeling.