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The program is placed in a really odd and non-helpful governmental area for the excitement of international investment in the United States. We are offering away as well much for as well little of a financial investment.


The local centers, with their half-million schemes, basically undercut the extra practical million-dollar part 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 company entities, not easy investments. It must have to do with creating real jobs, not elaborate estimations concerning the indirect creation of jobs, which is currently part of the regulation.


Possibly that is just one of the reasons it has stopped working every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too full of middlemen, both public and personal. The program has greater than its share of scandals, which I will enter later on if anybody is interested.


This is a company that loves to say yes to candidates, however as the table in my statement reveals, USCIS policemans have a lot more problem with EB-5 applications than others. I believe that is something that no one has actually really discussed a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas most likely to individuals that could not obtain them differently and to individuals whose scheduled financial investment is actually much less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Let me increase on among my monitorings.


My quote based on the investors' copyright applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not offer the type of data that we might use on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one dime. Under a far more shaky analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling 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 expect your remarks and questions. [The prepared statement of David North appears as a submission for the record.] Chairman Leahy. Thanks. Our next 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 check over here worked as Principal Counsel of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program in private technique. He was chosen, as I recognize, vice president of the Organization to Invest in United States, the nationwide sector association of regional.


Divine, we are thrilled to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were used, it would be 1 percent of the migration annually to the USA. It is not near that yet, but it is growing and getting towards that. Especially as USCIS, the firm that oversees the program, has actually been making the rules clearer and the procedures more sensible and clear for individuals who are organizing financial investments and for the investors that are investing, more people have been willing and able to place initiative and cash into the process to discover excellent tasks and develop them, and afterwards a lot more investors have wanted to spend their cash and take the danger and utilize the cash to produce the tasks that is the factor of the program.

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These projects do not wait about permanently, and USCIS comprehends that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, visit the site and, in fact, they are prepared to deny applications that are not qualifying. And they do so, as was stated


The regional center component of the program is not. It belongs to an appropriations expense that was enacted in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to work up a task and after that to get the investors authorized. And they do not desire their money moving through up until they you can check here have actually been accepted. And the specter of the expiry of this Regional Center Program in September is already inhibiting the growth of projects.

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I wish to clear up that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It simply is a truth that the majority of the regional facilities that are pooling investments have set those instead of high joblessness or in country locations where fifty percent- million-dollar investments are permitted, which makes good sense.