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The program is put in a very strange and non-helpful bureaucratic location for the excitement of global investment in the United States. We are providing away also much for also little of an investment.


The regional centers, with their half-million plans, essentially undercut the more reasonable 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 developing service entities, not passive financial investments. It must be concerning developing actual tasks, not clarify estimations regarding the indirect development of jobs, which is currently part of the regulations.


Perhaps that is just one of the reasons that it has stopped working time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with intermediaries, both public and private. The program has even more than its share of detractions, which I will get right into later if anyone is interested.


This is an agency that enjoys to say yes to candidates, but as the table in my testament reveals, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that nobody has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and permanently factor

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Seventh, in this program visas go to people who could not get them otherwise and to people whose scheduled investment is really much less, according to the Federal Get, than the ordinary mean internet worth of all American households in 2007. Let me broaden on one of my observations.


My estimate based on the investors' environment-friendly card applications submitted 2 years after the initial financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not supply the type of data that we might utilize on this.


For every $100 of enhanced foreign investment that year, the EB program added one dime. Under a far more shaky analytical base, the initial applications of prospective immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and inquiries. [The prepared statement of David North shows up as an entry for the document.] 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 practice group.




Divine served as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Replacement Supervisor. He has worked extensively with the EB-5 program in personal practice. He was elected, as I understand, vice president of the Organization discover here to Invest in USA, the nationwide industry association of regional.


Divine, we are thrilled to have you below. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the company that supervises the program, has been making the rules more clear and the procedures much more rational and clear for the people who are organizing investments and for the investors that are spending, even more people have wanted and able to place initiative and money into the procedure to find great tasks and establish them, and then more financiers have actually wanted to invest their cash and take the threat and use the cash to create the tasks that is the factor of the program.

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These jobs do not linger permanently, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, in fact, they are ready to deny applications that are not qualifying. And they do so, as was pointed out


The local center component of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since that program has actually been expanded 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 Continue day of expiry in September.


The procedure takes a good while to develop a project and afterwards to get the capitalists authorized. And they do not want their cash flowing with till they have been authorized. And the specter of the expiration of this Regional Center Program in September is already dissuading get more the development of tasks.

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I want to make clear that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 regulation that is part of the code. It just is a fact that the majority of the local centers that are pooling investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, and that makes good sense.