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The program is put in a really strange and non-helpful bureaucratic area for the stimulation of international investment in the United States. We are giving away as well much for as well small of a financial investment.


The local facilities, with their half-million systems, basically undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should have to do with creating business entities, not passive financial investments. It ought to be regarding developing genuine jobs, not specify calculations concerning the indirect development of jobs, which is now part of the legislation.


Possibly that is just one of the reasons it has stopped working every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with intermediaries, both public and private. The program has even more than its share of scandals, which I will get right into later if any person is interested.


This is a firm that likes to claim yes to candidates, yet as the table in my testimony shows, USCIS police officers have far more problem with EB-5 applications than others. I assume that is something that nobody has actually truly discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and completely factor

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Seventh, in this program visas go to individuals who might not obtain them differently and to individuals whose organized financial investment is actually less, according to the Federal Book, than the average mean total assets of all American households in 2007. Let me increase on one of my observations.


My estimate based upon the financiers' copyright applications filed 2 years after the first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the kind of information that we could utilize on this.


For every $100 of enhanced international investment that year, the EB program added one dime. Under a much a lot more shaky analytical base, the preliminary applications of would-be immigrant financiers, USCIS is informing journalists that the level 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 listening to me. I look ahead to your comments and questions. [The prepared statement of David North looks like a submission for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique team.




Divine worked as Principal Counsel of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Deputy Director. He has functioned extensively with the EB-5 program in personal method. He was chosen, as I understand, vice president of the Organization to Spend in U.S.A., the nationwide sector association of regional.


Divine, we are pleased to have you right here. Please go on, sir. 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) read more Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were utilized, it would be 1 percent of the migration each year to the United States. It is not near that yet, however it is expanding and getting towards that. Especially as USCIS, the company that oversees the program, has actually been making the regulations more clear and the procedures much more reasonable and clear for individuals who are organizing financial investments and for the capitalists who are investing, more individuals have actually wanted and able to place initiative and money right into the procedure to locate excellent jobs and establish them, and after that a lot more investors have actually been prepared to invest their cash and take the danger and utilize the cash to create the work that is the factor of the program.

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These jobs do not wait about permanently, and USCIS recognizes that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, in truth, they prepare to reject applications that are not certifying. And they do so, as was discussed


The local facility part of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The process takes an excellent while to function up a job and then to get the investors authorized. And they do not want their cash moving via up until they have been authorized. And the specter of the expiry of this Regional Center Program in September is already preventing the advancement of tasks.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It simply is a truth that many of the local facilities that are pooling financial investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.