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The program is positioned in a very strange and non-helpful administrative location for the excitement of global investment in the United States. Second, its scale is all wrong. We are handing out as well much for too little of a financial investment. Additionally, raising endeavor capital fifty percent a million bucks a tranche is, to say the least, ineffective.


The regional facilities, with their half-million plans, basically damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should have to do with producing business entities, not passive financial investments. It must be regarding developing real tasks, not specify calculations concerning the indirect production of work, which is now part of the regulations.


Possibly that is one of the reasons why it has stopped working year after year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too full of middlemen, both public and private. The program has more than its share of rumors, which I will enter into later on if anyone is interested.


This is an agency that enjoys to claim yes to candidates, however as the table in my testimony reveals, USCIS police officers have much extra problem with EB-5 applications than others. I believe that is something that nobody has actually discussed much. EB5 Regional Center Program. There are high prices of interior denials in this program and for good 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 Reserve, than the average mean total assets of all American households in 2007. Allow me increase on one of my monitorings.


My estimate based upon the capitalists' permit applications submitted 2 years after the initial financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not offer the type of data that we could use on this.


So for every single $100 of raised international financial investment that year, the EB program contributed one penny. Under a much a lot more shaky analytical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the degree of financial investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for listening to me. I look onward to your remarks and concerns. [The prepared declaration of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration technique team.




Divine worked as Principal Advise of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Director, and after that Acting Deputy Director. He has functioned thoroughly with the EB-5 program secretive technique. He was chosen, as I recognize, vice president of the Organization to Invest in USA, the national industry organization of local.


Divine, we are delighted to have you here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, yet it is expanding and obtaining towards that. Especially as USCIS, the firm that supervises the program, has actually been making the rules more clear and the procedures much more logical and clear for individuals that are organizing financial investments and for the financiers who are investing, even more individuals have agreed and able to put effort and money right into the procedure to locate great jobs and create them, and after that more investors have actually wanted to invest their money and take the threat and make use of 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 comprehends that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, actually, they prepare 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 since then that program has actually been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes a good while to develop a task and after that to get the capitalists approved. And they do not want their cash streaming via until they have been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the advancement of tasks.

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I would love to clarify that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 legislation that belongs to the code. It just is a fact that a click here lot of the regional centers that are pooling investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are permitted, and that makes good sense.