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First, the program is positioned in an extremely odd and non-helpful bureaucratic location for the excitement of international financial investment in the United States. Second, its scale is all incorrect. We are providing away excessive for too little of an investment. Further, increasing endeavor resources fifty percent a million bucks a tranche is, to say the least, ineffective.


The regional centers, with their half-million systems, essentially damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must be regarding creating organization entities, not passive financial investments. It needs to be concerning creating actual work, not specify computations regarding the indirect development of tasks, which is now part of the legislation.


Possibly that is just one of the reasons that it has actually stopped working time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well filled with intermediaries, both public and private. The program has greater than its share of rumors, which I will enter into later if any person is interested.


This is an agency that enjoys to say yes to candidates, yet as the table in my statement reveals, USCIS officers have far more problem with EB-5 applications than others. I believe that is something that no one has really discussed much. EB5 Regional Center Program. There are high prices of interior rejections in this program and completely factor

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Seventh, in this program visas go to people that could not get them any type of other way and to people whose organized investment is really much less, according to the Federal Book, than the average mean net well worth of all American family members in 2007. Allow me increase on one of my monitorings.


My price quote based on the capitalists' environment-friendly card applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not provide the kind of data that we could use on this.


So for each $100 of enhanced international investment that year, the EB program added one dime. Under a much more shaky analytical base, the initial applications of prospective immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thanks for listening to me. I expect your remarks and questions. [The ready declaration of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice team.




Divine worked as Chief Advice of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Deputy Director. He has actually worked extensively with the EB-5 program secretive practice. He was chosen, as I understand, vice president of the Organization to Spend in USA, the nationwide market organization of regional facilities.


Divine, we are thrilled to have you below. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 ports were utilized, it would be 1 percent of the immigration annually to the USA. It is not near that yet, but it is growing and getting toward that. Particularly as USCIS, the agency that looks after the program, has been making the policies more clear and the processes much more sensible and clear for the people that are arranging investments and for the capitalists that are investing, more individuals have wanted and able to place initiative and cash into the process to discover great tasks and develop them, and after that more financiers have actually agreed to invest their cash and take the threat and use the cash to develop the jobs that is the point of the program.

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These projects do not wait about for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, actually, they are ready to deny applications that are not certifying. And they do so, as was stated


The regional facility part of the program is not. It belongs to an appropriations bill that was passed in 1992, and considering that then that program has been extended 5 times for 19 years. It is time for it to be long-term, and EB5 Regional Center Program it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes a good while to work up a project and afterwards to obtain the capitalists authorized. And they do not desire their cash flowing via till they have been approved. And the specter of the expiry of this Regional Facility Program in September is already discouraging the development of tasks.

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I wish to make clear that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 legislation that is component of the code. It simply is a reality that a lot of the regional centers that are pooling financial investments have set those in locations of high unemployment or in backwoods where half- million-dollar financial investments are allowed, and that makes good sense.