Eb5 Regional Center Program - Questions

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The program is positioned in a really strange and non-helpful bureaucratic location for the excitement of international financial investment in the United States. We are providing away too much for as well little of a financial investment.


The regional facilities, with their half-million systems, basically undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to have to do with producing service entities, not passive investments. It needs to have to do with creating actual work, not specify estimations concerning the indirect production of jobs, which is now part of the legislation.


Possibly that is one of the factors why it has failed time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with middlemen, both public and private. The program has even more than its share of rumors, which I will certainly enter later if any person is interested.


This is a company that likes to state yes to candidates, but as the table in my testimony reveals, USCIS policemans have much more trouble with EB-5 applications than others. I assume that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas most likely to people that could not get them otherwise and to individuals whose planned investment is really less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Allow me expand on one of my observations.


My price quote based on the capitalists' eco-friendly card applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not provide the type of information that we could use on this.


For every $100 of raised international financial investment that year, the EB program added one cent. Under a much extra wobbly statistical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I look forward to your comments and concerns. [The ready declaration of David North shows up as an entry for the document.] Chairman Leahy. Thank you. 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 method group.




Divine served as Chief Counsel of the United States Citizenship and Immigration Providers from July 2004 until November 2006, that site the year in which he was Acting Director, and after that Performing Deputy Director. He has functioned extensively with the EB-5 program secretive practice. He was chosen, as I comprehend, vice president of the Organization to Buy USA, the national market organization of regional centers.


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


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the agency that manages the program, has actually been making the regulations more clear and the procedures much more reasonable and clear for individuals that are arranging financial investments and for the financiers that are investing, even more people have wanted and able to put initiative and cash right into the procedure to discover good projects and create them, and after that a lot more financiers have agreed to spend their money and take the risk and use the cash to develop the work that is the factor of the program.

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These jobs do not linger for life, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that that site they are unwinding their scrutiny, and, actually, they are prepared to refute applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It is component of an appropriations expense that was established in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be content irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The process takes an excellent while to develop a task and afterwards to obtain the investors approved. And they do not want their cash flowing with till they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the growth of jobs.

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I wish to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. It simply is a reality that a lot of the local centers that are merging investments have actually set those in places of high joblessness or in backwoods where half- million-dollar investments are allowed, and that makes good sense.