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The program is put in a very weird and non-helpful bureaucratic area for the excitement of international financial investment in the United States. We are providing away as well much for also small of a financial investment.

The regional centers, with their half-million schemes, essentially damaged 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, must have to do with developing company entities, not passive financial investments. It must have to do with producing genuine work, not elaborate calculations about the indirect production of work, which is currently part of the regulation.


Probably that is one of the reasons that it has actually fallen short time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well filled with middlemen, both public and private. The program has more than its share of detractions, which I will certainly enter into later if anybody is interested.


This is a company that loves to state yes to applicants, but as the table in my testimony shows, USCIS officers have a lot more problem with EB-5 applications than others. I assume that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and completely reason

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Seventh, in this program visas most likely to people who can not get them any kind of various other method and to people whose planned investment is really less, according to the Federal Reserve, than the average mean net well worth of all American families in 2007. Let me expand on one of my observations.


My estimate based on the investors' permit applications filed 2 years after the very first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not give the type of data that we could make use of on this.


So for each $100 of enhanced international financial investment that year, the EB program added one penny. Under a much extra wobbly analytical base, the initial applications of prospective immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and inquiries. [The prepared declaration of David North looks like an entry for the record.] 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 company's immigration method team.

Divine functioned as Principal Counsel of the USA Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has functioned extensively with the EB-5 program in exclusive method. He was chosen, as I comprehend, vice head of state of the Association to Invest in U.S.A., the nationwide industry organization of local.


Divine, we are delighted to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were made use of, it would be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is growing and obtaining towards that. Especially as USCIS, the firm that manages the program, has been making the regulations more clear and the processes much more reasonable and clear for individuals that are arranging investments and for the capitalists that are investing, even more people have agreed and able to place initiative and money into the process to discover great jobs and create them, and afterwards much more investors have actually been ready to spend their money and take the risk and make use of the cash to develop the work that is the factor of the program.

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These projects do not linger for life, and USCIS recognizes that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, actually, they are prepared to refute applications that are not qualifying. And they do so, as was mentioned

The local facility part of the program is not. It is part of an appropriations costs that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes a great while to work up a project and after that to get the financiers accepted. And they do not desire their cash flowing through up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September read more is currently dissuading the advancement of projects.

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I would certainly such as to make clear that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 regulation that belongs to the code. It just is a truth that many of the regional facilities that are merging financial investments have established those in areas of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes good sense.