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Initially, the program is positioned in a very weird and non-helpful governmental place for the stimulation of international financial investment in the United States. Second, its scale is all wrong. We are providing away way too much for as well tiny of an investment. Better, raising equity capital fifty percent a million dollars a tranche is, to say the least, inefficient.


The local facilities, with their half-million plans, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must be about producing company entities, not easy investments. It needs to have to do with producing actual jobs, not clarify estimations regarding the indirect production of tasks, which is now component of the regulation.


Perhaps that is among the reasons why it has actually stopped working every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with intermediaries, both public and private. The program has even more than its share of rumors, which I will get into later on if anybody is interested.


This is an agency that likes to say yes to candidates, however as the table in my statement shows, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that nobody has truly discussed much. EB5 Regional Center Program. There are high prices of internal denials in this program and for great factor

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Seventh, in this program visas go to people that can not obtain them otherwise and to individuals whose scheduled investment is actually much less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Let me increase on one of my monitorings.


My estimate based on the capitalists' permit applications filed 2 years after the very first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not supply the sort of data that we can utilize on this.


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

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Thank you for listening to me. I anticipate your comments and concerns. [The ready declaration of David North shows up as 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 company's immigration practice team.




Divine acted as Chief Counsel of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. He has actually worked thoroughly with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Association to Spend in USA, the nationwide market organization of regional facilities.


Divine, we are happy to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were used, it would be 1 percent of the migration annually to the USA. It is not near that yet, yet it is growing and getting towards that. Particularly as USCIS, the company 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 organizing investments and for the capitalists who are investing, more people have wanted and able to put effort and money right into the procedure to find excellent projects and develop them, and afterwards a lot more capitalists have been ready to spend their cash and take the threat and use the money to create the tasks that is the point of the program.

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These projects do not wait around forever, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, as a matter of fact, they are prepared to deny applications that are not certifying. And they do so, as was stated


The regional facility part of the program is not. It is component of an appropriations bill that was established in 1992, and given that then that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes a great while to develop a project and after that to obtain the investors accepted. And they do not desire their money flowing via until they have been approved. And the here specter of the expiry of this Regional Center Program in September is currently discouraging the advancement of tasks.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 regulation that belongs to the code. It just is a truth that a lot of the local centers that are pooling financial investments have actually set those instead of high unemployment or in country areas where half- million-dollar investments are allowed, and that makes sense.