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The program is placed in an extremely odd and non-helpful governmental location for the stimulation of international financial investment in the United States. We are offering away too much for also tiny of a financial investment.

The local centers, with their half-million plans, basically undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should have to do with creating service entities, not passive financial investments. It ought to have to do with creating actual work, not elaborate estimations about the indirect development of jobs, which is currently component of the regulations.

Perhaps that is among the reasons that it has stopped working time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with intermediaries, both public and personal. The program has more than its share of scandals, which I will enter into later if any person is interested.

This is a firm that likes to say yes to applicants, however as the table in my statement reveals, USCIS police officers have much extra trouble with EB-5 applications than others. I believe that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high prices of internal denials in this program and for good reason

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Seventh, in this program visas most likely to people who might not obtain them any type of various other means and to people whose scheduled financial investment is actually less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Let me broaden on one of my monitorings.

My estimate based on the capitalists' copyright applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not give the type of information that we could use on this.

For every $100 of raised foreign investment that year, the EB program contributed one cent. Under a much more shaky analytical base, the initial applications of potential immigrant investors, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I eagerly anticipate your comments and inquiries. [The ready statement of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice team.


Divine acted as Principal Advise of try this the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has actually functioned extensively with the EB-5 program secretive technique. He was chosen, as I understand, vice president of the Organization to Buy USA, the nationwide sector association of regional centers.

Divine, we are happy 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 PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.

At many, if all 10,000 slots were used, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Specifically as USCIS, the agency that oversees the program, has actually been making the regulations clearer and the processes much more logical and clear for individuals who are organizing financial investments and for the financiers who are investing, more people have actually wanted and able to place initiative and cash into the process to locate great projects and create them, and after that much more investors have actually been prepared to invest their money and take the risk and utilize the cash to develop the work that is the factor of the program.

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These tasks do not wait about forever, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, in reality, they are all set to deny applications that are not qualifying. And they view it do so, as was pointed out

The regional facility component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and because then that program has been prolonged 5 times for 19 years. It is time for it to be long-term, and Extra resources it requires to be done currently and not nearer to the day of expiry in September.

The process takes a great while to develop a job and after that to obtain the investors accepted. And they do not desire their cash streaming through till they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already dissuading the growth of projects.

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I wish to clear up that the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 law that is part of the code. It just is a reality that the majority of the local centers that are pooling investments have established those instead of high joblessness or in backwoods where half- million-dollar financial investments are allowed, and that makes sense.

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