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The program is put in a very weird and non-helpful administrative place for the excitement of international financial investment in the United States. We are providing away too much for as well small of an investment.


The local facilities, with their half-million plans, essentially undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be about producing organization entities, not passive investments. It needs to be concerning developing real jobs, not elaborate calculations about the indirect development of jobs, which is currently part of the legislation.


Probably that is one of the reasons why it has failed every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too full of middlemen, both public and personal. The program has greater than its share of detractions, which I will get involved in later if anyone is interested.


This is an agency that likes to state yes to candidates, yet as the table in my testimony shows, USCIS police officers have far more problem with EB-5 applications than others. I think that is something that no one has really chatted around much. EB5 Regional Center Program. There are high prices of internal denials in this program and forever factor

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Seventh, in this program visas most likely to people who might not get them differently and to individuals whose planned investment is in fact less, according to the Federal Get, than the ordinary mean internet worth of all American family members in 2007. Let me expand on one of my monitorings.


My estimate based upon the investors' permit applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not supply the type of data that we can utilize on this.


For every $100 of boosted international investment that year, the EB program contributed one cent. Under a much extra shaky analytical base, the preliminary applications of would-be immigrant financiers, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I look forward to your comments and inquiries. [The prepared statement of David North shows up as an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.




Divine worked as Principal Guidance of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Director. He has worked thoroughly with the EB-5 program in exclusive practice. He was elected, as I understand, vice head of state of the Organization to Spend in United States, the national industry association of regional.


DECLARATION 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 a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration annually to the USA. It is not near that yet, however it is expanding and obtaining towards that. Particularly as Learn More USCIS, the company that oversees the program, has been making the rules see it here clearer and the processes extra sensible and clear for individuals who are organizing financial investments and for the financiers that are spending, more individuals have wanted and able to place initiative and money right into the process to locate good jobs and create them, and after that much more capitalists have wanted to spend their money and take the threat and make use of the cash to produce the jobs that is the point of the program.

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These projects do not linger for life, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, in truth, they prepare to refute applications that are not qualifying. And they do so, as was discussed


The local facility component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes a great while to develop a project and after that to get the investors approved. And they do not want their cash moving through up until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently preventing the growth of tasks.

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I would certainly such as to clarify 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 function of the regular EB-5 regulation that becomes part of the code. It simply is a fact that many of the local centers that are pooling investments have actually set those in areas of high unemployment or in backwoods where half- our website million-dollar investments are allowed, which makes sense.