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The program is positioned in a really weird and non-helpful bureaucratic location for the stimulation of international financial investment in the United States. We are giving away too much for also little of a financial investment.

The regional facilities, with their half-million plans, basically undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to be regarding producing organization entities, not passive financial investments. It ought to be concerning developing real tasks, not elaborate calculations regarding the indirect development of work, which is currently part of the regulation.


Probably that is just one of the reasons it has actually stopped working time after time to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with intermediaries, both public and private. The program has greater than its share of rumors, which I will get into later on if anyone is interested.


This is a company that likes to say yes to applicants, yet as the table in my testament shows, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and for excellent factor

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Seventh, in this program visas go to individuals who could not get them differently and to individuals whose organized investment is actually much less, according to the Federal Get, than the ordinary mean web well worth of all American family members in 2007. Let me increase on one of my monitorings.


My estimate based upon the financiers' copyright applications filed 2 years after the initial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not provide the sort of information that we might use on this.


So for every single $100 of raised foreign investment that year, the EB program contributed one cent. Under a much extra unsteady statistical base, the initial applications of prospective immigrant financiers, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I look ahead to your remarks and inquiries. [The ready declaration of David North shows up as an entry for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method team.

Divine worked as Chief Guidance of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Director. He has worked see here extensively with the EB-5 program in exclusive technique. He was elected, as I understand, vice head of state of the Organization to Invest in United States, the nationwide sector association of local.


Divine, we are happy to have you below. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were utilized, it would be 1 percent of the migration yearly to the United States. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the firm that looks after the program, has actually been making the guidelines clearer and the processes extra sensible and clear for the individuals that are organizing financial investments and for the financiers that are spending, even more people have actually wanted and able to place initiative and cash right into the process to discover excellent projects and establish them, and afterwards extra financiers have been willing to spend their cash and take the danger and use the cash to develop the jobs that is the factor of the program.

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These projects do not wait around permanently, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, actually, they are ready to refute applications that are not qualifying. And they do so, as was discussed

The local facility part of the program is not. It is component of an appropriations costs that was passed why not look here in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes a great while to develop a job and afterwards to obtain the capitalists accepted. And they do not desire their cash streaming through until they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the development of tasks.

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I wish to make clear that the Regional Facility more helpful hints Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 legislation that is part of the code. It simply is a truth that the majority of the local facilities that are pooling investments have actually established those in areas of high joblessness or in rural locations where half- million-dollar investments are enabled, which makes sense.