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The program is put in a really odd and non-helpful governmental location for the stimulation of international financial investment in the United States. We are giving away also much for too little of a financial investment.

The local facilities, with their half-million systems, basically undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must have to do with producing business entities, not easy investments. It ought to have to do with producing real jobs, not specify computations about the indirect production of jobs, which is currently part of the legislation.

Perhaps that is among the reasons it has stopped working time after time to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with middlemen, both public and private. The program has more than its share of detractions, which I will certainly obtain right into later if any person is interested.

This is a company that loves to state yes to candidates, but as the table in my statement reveals, USCIS officers have far more difficulty with EB-5 applications than others. I assume that is something that nobody has actually really spoken about much. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals who could not get them differently and to people whose organized financial investment is in fact much less, according to the Federal Get, than the average mean internet well worth of all American family members in 2007. Allow me increase on one of my observations.

My estimate based upon the investors' permit applications submitted 2 years after the initial financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not provide the kind of information that we might use on this.

For every $100 of increased international investment that year, the EB program added one penny. Under a far more wobbly statistical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I expect your remarks and concerns. [The prepared statement 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 firm's migration practice team.


Divine functioned as Principal Advise of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Supervisor. He has functioned extensively with the EB-5 program in personal practice. He was chosen, as I recognize, vice head of state of the Organization to Buy United States, the nationwide sector association of local centers.

DECLARATION OF ROBERT C. DIVINE, ATTORNEY, 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, Legislator Grassley, and others.

At many, if all 10,000 ports were used, it would be 1 percent of the immigration each year to the USA. It is not near that yet, yet it is growing and obtaining towards that. Particularly as USCIS, the company that manages the program, has actually been making the rules more clear and the procedures extra reasonable and clear for individuals who are arranging investments and for the more info investors who are spending, even more people have agreed and able to put initiative and money right into the process to find good jobs and establish them, and after that a lot more investors have actually been ready to invest their money and take the risk and utilize the money to develop the tasks that is the point of the program.

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These tasks do not wait about for life, 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 examination, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was discussed

The regional center component of the program is not. It is component of an appropriations costs that was passed in 1992, and since then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.

The procedure takes an excellent while to develop a job and after that to obtain the investors accepted. And they do not desire their money streaming via up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the advancement of tasks.

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I would love 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 function of the routine EB-5 legislation that is part of the code. It just is a reality that the majority of the regional centers that are merging investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes sense.

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