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First, the program is positioned in an extremely odd and non-helpful governmental location for the excitement of global financial investment in the USA. Second, its scale is all wrong. We are distributing also much for also small of an investment. Better, elevating financial backing half a million dollars a tranche is, to state the least, ineffective.


The regional facilities, with their half-million plans, essentially damaged the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with developing service entities, not passive financial investments. It ought to be concerning producing actual tasks, not elaborate computations about the indirect production of tasks, which is currently part of the regulations.


Possibly that is just one of the reasons that it has actually fallen short every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with intermediaries, both public and personal. The program has greater than its share of detractions, which I will enter into later on if any person is interested.


This is a firm that likes to say yes to applicants, yet as the table in my statement reveals, USCIS officers have far more difficulty with EB-5 applications than others. I assume that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and for excellent reason

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Seventh, in this program visas most likely to people who could not obtain them differently and to individuals whose planned investment is actually much less, according to the Federal Book, than the average mean total assets of all American families in 2007. Let me expand on one of my monitorings.


My quote based on the capitalists' permit applications filed 2 years after the very first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not offer the kind of information that we might utilize on this.


For every $100 of raised international financial investment that year, the EB program contributed one penny. Under a far more unsteady statistical base, the first 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 listening to me. I look onward to your comments and concerns. [The ready declaration of David North looks like a submission 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 migration practice group.




Divine worked as Chief Counsel of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program in private practice. He was chosen, as I understand, vice head of state of the Association to Invest in USA, the national market association of local.


DECLARATION 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.


At the majority of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the agency that manages the program, has been making the guidelines clearer and the processes more rational and clear for individuals who are arranging financial investments and for the financiers that are spending, more individuals have wanted and able to place effort and cash right into the procedure to discover excellent projects and establish them, and after that a lot more investors have agreed to spend their cash and take the risk and utilize the website cash to develop the tasks that is the factor of the program.

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These tasks do not wait about for life, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, in truth, they prepare to refute applications that are not certifying. And they do so, as was discussed


The regional facility part of the program is not. It becomes part of an appropriations costs that was passed in 1992, and given that then that program has actually been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiry in September.


The process takes a great while to work up a job and afterwards to get the capitalists approved. And they do not want their money flowing through until they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is currently preventing the growth of jobs.

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I would love to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that is part of the code. It simply is a reality that the majority of the local facilities that are merging financial investments have actually set those in places of high unemployment or in backwoods where half- million-dollar investments are enabled, and that makes good sense.