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The program is put in a very strange and non-helpful governmental place for the stimulation of international financial investment in the United States. We are offering away too much for as well small of a financial investment.


The regional centers, with their half-million schemes, essentially undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, need to have to do with producing organization entities, not passive investments. It must be about developing genuine tasks, not elaborate estimations concerning the indirect creation of work, which is currently component of the regulation.


Maybe that is one of the reasons that it has failed year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also full of middlemen, both public and personal. The program has greater than its share of rumors, which I will enter into later if any person is interested.


This is a firm that enjoys to claim yes to applicants, but as the table in my statement shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and for excellent reason

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Seventh, in this program visas most likely to individuals who could not get them any kind of other method and to individuals whose planned financial investment is really less, according to the Federal Get, than the average mean total assets of all American families in 2007. Allow me increase on one of my monitorings.


My quote based on the investors' environment-friendly card applications filed 2 years after the first financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not provide the sort of data that we might utilize on this.


For every $100 of boosted international investment that year, the EB program added one cent. Under a a lot more unsteady analytical base, the initial applications of potential immigrant investors, USCIS is telling reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I eagerly anticipate your comments and concerns. [The prepared statement of David North appears as a submission for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique team.




Divine functioned as Principal Advise of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has worked extensively with the EB-5 program in personal practice. He was chosen, as I recognize, vice president of the Organization to Invest in USA, the nationwide sector association of regional.


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


At a lot of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, but it is expanding and obtaining towards that. Particularly as USCIS, the company that oversees the program, has actually been making the guidelines more clear and the processes a lot more reasonable and clear for individuals who are organizing financial investments and for the financiers that are investing, more people have actually agreed and able to place initiative and cash right into the process to find good jobs and develop them, and after that more financiers have wanted to spend their cash and take the threat and use the cash to produce the jobs that is the factor of the program.

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These tasks do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, in fact, they are prepared to reject applications that are not qualifying. And they do so, as was pointed out


The local facility part of the program is not. It is component 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 requires to be done currently and not nearer to the date of expiry in September.


The process takes a good while to function up a job and after that to obtain the capitalists authorized. And they do not want their money flowing with until they have been authorized. And the specter of the expiry of this Regional Center Program in September is already dissuading the advancement of projects.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 legislation that is component of the code. It simply is a reality that most of the local centers that are merging financial investments have actually established those in places of high unemployment or in backwoods where half- million-dollar financial investments are allowed, which makes feeling.