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The program is positioned in an extremely strange and non-helpful administrative place for the excitement of international investment in the United States. We are offering away as well much for as well tiny of a financial investment.


The local centers, with their half-million systems, essentially undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to have to do with creating service entities, not easy investments. It needs to be regarding developing actual tasks, not elaborate computations concerning the indirect production of work, which is now component of the regulation.


Perhaps that is one of the reasons it has actually failed year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will enter later if anyone is interested.


This is a firm that enjoys to say yes to candidates, however as the table in my testimony reveals, USCIS officers have a lot more problem with EB-5 applications than others. I think that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently factor

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Seventh, in this program visas most likely to people who might not get them any type of other means and to individuals whose planned financial investment is in fact less, according to the Federal Reserve, than the average mean internet worth of all American family members in 2007. Let me increase on among my observations.


My price quote based upon the investors' eco-friendly card applications filed 2 years after the very first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not provide the kind of information that we could use on this.


For every $100 of raised international financial investment that year, the EB program added one dime. Under a far more shaky analytical base, the first applications of potential immigrant financiers, USCIS is telling journalists that the degree of 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 expect your comments and inquiries. [The ready declaration of David North shows up as an entry for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is Check Out Your URL a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine acted as Principal Guidance of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Director, and then Acting Deputy Director. He has actually worked thoroughly with the EB-5 program in private practice. He was chosen, as I understand, vice president of the Association to Purchase U.S.A., the nationwide market association of local facilities.


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 OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is expanding and obtaining towards that. Particularly as USCIS, the agency that supervises the program, has been making the regulations more clear and the procedures a lot more sensible and clear for the individuals that are organizing financial investments and for the capitalists who are spending, more people have been eager and able to place effort and cash into the procedure to discover good jobs and create them, and afterwards much more investors have been eager to spend their cash and take the risk and utilize the cash to develop the work that is the factor of the program.

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These projects do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they see this are unwinding their analysis, and, web link in fact, they are ready to reject applications that are not qualifying. And they do so, as was pointed out


The local center component of the program is not. It becomes part of an appropriations costs that was passed in 1992, and since then that program has been expanded 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 date of expiration in September.


The process takes a good while to work up a project and after that to get the capitalists approved. And they do not desire their money streaming via up until they have been approved. And the specter of the expiry of this Regional Facility Program in September is already preventing the growth of projects.

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I would love to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 regulation that belongs to the code. It simply is a fact that many of the regional facilities that are pooling investments have set those in areas of high unemployment or in country locations where half- million-dollar investments are enabled, which makes good sense.