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The program is put in a very strange and non-helpful administrative place for the excitement of international investment in the United States. We are providing away too much for also small of a financial investment.


The local facilities, with their half-million schemes, essentially damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should have to do with developing business entities, not easy investments. It needs to be regarding developing genuine work, not specify computations regarding the indirect creation of work, which is currently component of the regulations.


Perhaps that is one of the reasons that it has actually stopped working every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too full of intermediaries, both public and personal. The program has greater 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, however as the table in my testimony shows, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever reason

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Seventh, in this program visas go to individuals who can not get them any kind of other way and to individuals whose planned financial investment is actually much less, according to the Federal Reserve, than the ordinary mean web well worth of all American households in 2007. Allow me expand on among my observations.


My estimate based on the investors' copyright applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not supply the kind of information that we could make use of on this.


For every $100 of raised international investment that year, the EB program added one penny. Under a far more wobbly statistical base, the initial applications of potential immigrant capitalists, USCIS is informing journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I expect your comments and questions. [The prepared declaration of David North shows up as an entry for the record.] 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 company's immigration practice group.




Divine worked as Principal Guidance of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. He has actually functioned extensively with the EB-5 program in personal practice. He was elected, as I comprehend, vice head of state of the Organization to Invest in USA, the national sector organization of local.


Divine, we are thrilled to have you below. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were made use of, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the company that looks after the program, has actually been making the rules clearer and the processes more see this here reasonable and clear for the individuals who are arranging financial investments and for the capitalists that are spending, even more individuals have actually agreed and able to put effort and money into the procedure to find great projects and create them, and afterwards extra capitalists have wanted to spend their cash and take the threat and make use of the cash to create the tasks that is the factor of the program.

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These jobs do not linger permanently, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and given that then that program has actually been extended five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a great my blog while to function up a task and afterwards to obtain the investors approved. And they do not want their money streaming with till they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the development of tasks.

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I want to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It simply is a fact that a lot of the regional facilities that are pooling financial investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar financial index investments are allowed, which makes good sense.