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The program is positioned in an extremely weird and non-helpful bureaucratic place for the stimulation of worldwide financial investment in the United States. We are offering away too much for too tiny of an investment.

The regional centers, with their half-million systems, basically damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should be regarding creating business entities, not passive financial investments. It must be about creating actual tasks, not clarify computations concerning the indirect production of work, which is now component of the regulations.

Probably that is just one of the reasons it has fallen short every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with intermediaries, both public and personal. The program has more than its share of rumors, which I will certainly enter into later if anybody is interested.

This is an agency that enjoys to say yes to applicants, but as the table in my testament shows, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has really spoken around much. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals who could not obtain them differently and to people whose scheduled investment is in fact less, according to the Federal Reserve, than the ordinary mean internet worth of all American households in 2007. Let me increase on among my monitorings.

My quote based upon the financiers' permit applications filed 2 years after the first investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not give the type of information that we could utilize on this.

So for each $100 of enhanced foreign investment that year, the EB program contributed one cent. Under a a lot more wobbly analytical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and concerns. [The ready statement of David North looks like 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 team.


Divine acted as Principal Advise of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Director. He has actually functioned extensively with the EB-5 program in personal method. He was elected, as I comprehend, vice head of state of the Association to Buy United States, the nationwide sector organization of local centers.

Divine, we are thrilled to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, click here DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.

At many, if all 10,000 ports were made use of, it would be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and obtaining toward that. Especially as USCIS, the firm that manages the program, has been making the policies clearer and the processes much more logical and clear for individuals that are organizing financial investments and for the financiers that are investing, even more people have wanted and able to place initiative and cash right into the process to discover excellent jobs and establish them, and after that more investors have agreed to invest their money and take the danger and make use of the cash to create the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was mentioned

The regional center component of the program is not. It is part of an appropriations expense that was established in 1992, and considering that then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.

The procedure takes a great while to work up a task and after that to obtain the financiers accepted. And they do not want their cash flowing with up until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is currently dissuading the development of tasks.

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I want to clear up that the Regional Center Program is not the same as the half-million-dollar thing. 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 just is a truth that many of the regional facilities that are merging financial investments have actually established those instead of high unemployment or in rural locations where fifty percent- million-dollar financial investments are enabled, which makes good sense.

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