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The program is put in a really odd and non-helpful administrative area for the excitement of international investment in the United States. We are offering away too much for as well little of a financial investment.


The regional facilities, with their half-million plans, essentially undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to be concerning developing business entities, not easy financial investments. It ought to have to do with creating actual tasks, not elaborate estimations concerning the indirect production of tasks, which is now part of the regulations.


Maybe that is among the reasons that it has stopped working year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too full of middlemen, both public and personal. The program has more than its share of detractions, which I will get involved in later if any person is interested.


This is an agency that enjoys to state yes to candidates, but as the table in my statement shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely factor

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Seventh, in this program visas go to people who could not get them otherwise and to individuals whose planned investment is really less, according to the Federal Book, than the typical mean total assets of all American family members in 2007. Allow me increase on among my observations.


My quote based upon the financiers' permit 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 verified-- that is my price quote. USCIS does not provide the type of information that we might utilize on this.


So for each $100 of raised international financial investment that year, the EB program added one cent. Under a a lot more wobbly analytical base, the preliminary applications of prospective immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thanks for listening to me. I eagerly anticipate your comments and inquiries. [The prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. 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 immigration method group.




Divine worked as Principal Counsel of the United States Citizenship and Immigration find out here Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Replacement Director. He has worked extensively with the EB-5 program secretive technique. He was chosen, as I understand, vice head of state of the Organization to Spend in United States, the nationwide industry organization of regional.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is expanding and getting towards that. Especially as USCIS, the agency that looks after the program, has been making the regulations clearer and the processes extra logical and clear for the individuals that are organizing financial investments and for the investors who are investing, even more individuals have agreed and able to place effort and money right into the process to discover excellent jobs and create them, and then extra investors have actually agreed to spend their money and take the danger and utilize the money to develop the work that is the point of the program.

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These tasks do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 additional resources Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, Look At This they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since 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 day of expiry in September.


The process takes an excellent while to work up a project and after that to get the capitalists authorized. And they do not want their cash flowing with until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is currently preventing the development of tasks.

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I would such as 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 feature of the normal EB-5 regulation that becomes part of the code. It just is a reality that most of the regional centers that are pooling financial investments have actually established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes sense.