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The program is placed in an extremely strange and non-helpful bureaucratic location for the excitement of global financial investment in the United States. Second, its range is all wrong. We are offering away excessive for too little of a financial investment. Further, raising financial backing half a million bucks a tranche is, to say the least, ineffective.


The regional facilities, with their half-million schemes, essentially damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with producing service entities, not passive financial investments. It needs to have to do with developing real work, not specify estimations about the indirect creation of tasks, which is currently component of the regulation.


Possibly that is among the reasons why it has stopped working time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too loaded with intermediaries, both public and private. The program has more than its share of rumors, which I will certainly obtain right into later on if anyone is interested.


This is an agency that enjoys to state yes to applicants, but as the table in my testimony reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually chatted about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to people who can not obtain them any various other method and to people whose planned investment is really much less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Let me increase on one of my observations.


My price quote based on the capitalists' eco-friendly card applications filed 2 years after the first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not give the sort of data that we might make use of on this.


So for every $100 of increased international financial investment that year, the EB program added one penny. Under a much a lot more unsteady statistical base, the first applications of potential immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I look ahead to your comments and inquiries. [The ready statement of David North shows up as 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 Advice of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Supervisor, and then Acting Replacement Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice head of state of the Organization to Buy USA, the nationwide market organization of regional centers.


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


At the majority of, other if all 10,000 ports were utilized, it would certainly be 1 percent of the migration every year to the USA. It you can find out more is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the agency that supervises the program, has been making the guidelines more clear and the processes much more reasonable and clear for the individuals who are organizing financial investments and for the financiers that are spending, more people have actually been eager and able to put effort and money right into the procedure to find great projects and develop them, and afterwards much more investors have wanted to spend their cash and take the danger and use the cash to develop the tasks that is the point of the program.

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These projects do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It is part of an appropriations expense that was established in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes a great while to work up a task and after that see this website to obtain the financiers authorized. And they do not want their cash moving with up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already dissuading the development of tasks.

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I want to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 legislation that becomes part of the code. It just is a fact that the majority of the regional facilities that are merging financial investments have actually set those instead of high joblessness or in country areas where half- million-dollar financial investments are allowed, and that makes good sense.