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

The regional facilities, with their half-million systems, basically undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with producing service entities, not passive financial investments. It should have to do with creating actual work, not specify computations about the indirect production of jobs, which is now component of the regulations.


Probably that is one of the reasons it has actually fallen short time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also loaded with middlemen, both public and private. The program has more than its share of rumors, which I will certainly enter into later on if anyone is interested.


This is an agency that enjoys to state yes to candidates, however as the table in my testimony shows, USCIS policemans have a lot more problem with EB-5 applications than others. I think that is something that no one has actually truly discussed a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and completely reason

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Seventh, in this program visas most likely to people that can not get them differently and to people whose organized investment is actually much less, according to the Federal Reserve, than the ordinary mean internet worth of all American households in 2007. Let me increase on one of my monitorings.


My price quote based on the financiers' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not provide the sort of information that we could use on this.


For every $100 of raised foreign investment that year, the EB program contributed one penny. Under a a lot more shaky statistical base, the first applications of potential immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I anticipate your comments and concerns. [The ready declaration of David North looks like an entry for the record.] Chairman Leahy. Thank you. 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 technique group.

Divine acted as Chief Guidance of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has functioned extensively with the EB-5 program in exclusive technique. He was elected, as I recognize, vice head of state of the Organization to Spend in United States, the nationwide market association of local facilities.


Divine, we are delighted to have you here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, however it is growing and getting toward that. Particularly as USCIS, the company that looks after the program, has actually been making the policies more clear and the procedures extra rational and clear for individuals who are arranging investments and for the financiers who are investing, more people have actually been willing and able to place effort and cash right into the process to find good tasks and create them, and then more investors have agreed to spend their money and take the threat and make use of the cash to create the jobs that is the factor of the program.

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These jobs do not linger for life, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, actually, they are prepared to refute applications that are not certifying. And they do so, as was discussed

The regional facility part of the program is not. It belongs to an appropriations bill that was established 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 now and not nearer to the day of expiry in September.


The process takes a great while to develop a task and afterwards to obtain the investors approved. And they do not want their money moving with up until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the growth of projects.

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I would love to clear up that the Regional Center Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 law that here is component of the code. It simply is a truth that a lot of the regional centers that are merging financial investments have actually established those instead of high unemployment or in rural areas where half- million-dollar financial investments are enabled, which makes good sense.