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The program is positioned in a very strange and non-helpful governmental area for the stimulation of worldwide investment in the United States. We are providing away as well much for as well small of an investment.


The local facilities, with their half-million schemes, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to be regarding producing business entities, not passive financial investments. It should have to do with producing real work, not clarify calculations concerning the indirect creation of jobs, which is currently part of the regulations.


Perhaps that is just one of the reasons it has fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well full of intermediaries, both public and private. The program has even more than its share of detractions, which I will certainly obtain right into later on if any person is interested.


This is a firm that likes to claim yes to candidates, yet as the table in my testament shows, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that no one has actually really discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and completely reason

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Seventh, in this program visas go to people who could not get them any other way and to people whose scheduled financial investment is in fact much less, according to the Federal Book, than the average mean total assets of all American households in 2007. Let me broaden on one of my observations.


My quote based on the investors' permit applications filed 2 years after the first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not supply the type of information that we can use on this.


So for every single $100 of increased foreign investment that year, the EB program added one dime. Under a a lot more shaky analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thank you for listening to me. I expect your remarks and questions. [The prepared statement of David North appears as a submission 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 immigration technique team.




Divine served as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Supervisor. He has actually functioned extensively with the EB-5 program in private technique. He was chosen, as I understand, vice head of state of the Association to Spend in U.S.A., the nationwide market organization of regional.


Divine, we are delighted to have you right here. Please proceed, sir. DECLARATION OF ROBERT read more 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 utilized, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is expanding and getting toward that. Particularly as USCIS, the company that looks after the program, has been making the policies clearer and the procedures a lot more logical and clear for the individuals who are arranging investments and for the capitalists who are investing, more individuals have actually agreed and able to put initiative and cash right into the process to find great projects and create them, and after that much more investors have actually wanted to spend their cash and take the risk and make use of the cash to produce the work that is the factor of the program.

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These jobs do not wait around permanently, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The regional center component of the program is not. It belongs to an appropriations costs that was passed in 1992, and because then that program has actually been prolonged 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 expiry in September.


The process takes an excellent while to function up a task and then to obtain the investors accepted. And they do not want their cash flowing with until they have been accepted. And the specter of the expiry of this Regional Center Program in September is currently discouraging the growth of projects.

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I wish to clarify 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 feature 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 unemployment or in rural areas where half- million-dollar investments are enabled, which makes sense.