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Initially, the program is positioned in a really strange and non-helpful governmental location for the excitement of worldwide investment in the United States. Second, its scale is all incorrect. We are offering away also much for too tiny of a financial investment. Even more, elevating financial backing half a million dollars a tranche is, to state the least, inefficient.


The regional centers, with their half-million systems, basically undercut the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, must have to do with developing organization entities, not passive financial investments. It should have to do with developing actual jobs, not elaborate computations about the indirect creation of jobs, which is currently component of the regulation.


Perhaps that is one of the reasons it has actually fallen short year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter into later if anyone is interested.


This is a firm that loves to claim yes to candidates, yet as the table in my testament shows, USCIS policemans have far more trouble with EB-5 applications than others. I assume that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to people that can not get them differently and to individuals whose scheduled financial investment is actually less, according to the Federal Book, than the average mean total assets of all American families in 2007. Let me increase on among my monitorings.


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


For every $100 of enhanced foreign investment that year, the EB program contributed one cent. Under a a lot more wobbly analytical base, the first applications of prospective immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I expect your comments and concerns. [The ready statement of David North looks like a submission 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 immigration method group.




Divine worked as Principal Guidance of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. He has worked extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice president of the Association to Spend in U.S.A., the nationwide industry organization of regional.


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


At a lot of, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the agency that supervises the program, has actually been making the regulations more clear and the procedures extra logical and clear for individuals that are organizing investments and for the investors who are spending, even more people have actually wanted and able to place initiative and cash right into the procedure to find great projects and create them, and then more financiers have actually been eager to invest their money and take the risk and make use of the cash to create the jobs that is the point of the program.

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These jobs do not wait about permanently, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not click here suggest that they are relaxing their scrutiny, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was stated


The local center component of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has actually 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 day of expiration in September.


The procedure takes a good while to work up a job and then to obtain the investors accepted. And they do not desire their cash flowing through up until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already inhibiting the growth of projects.

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I wish to clarify that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 legislation that becomes part of the code. It just is a truth that many of the regional centers that are merging investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes sense.