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The program is placed in a very weird and non-helpful administrative location for the excitement of international investment in the United States. Second, its scale is all wrong. We are distributing excessive for too little of a financial investment. Additionally, raising venture resources half a million dollars a tranche is, to state the least, ineffective.


The local facilities, with their half-million systems, basically damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to be regarding producing business entities, not easy financial investments. It ought to have to do with creating real tasks, not elaborate estimations regarding the indirect creation of tasks, which is now component of the regulations.


Perhaps that is just one of the factors why it has fallen short 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 as well filled up with middlemen, both public and exclusive. The program has even more than its share of detractions, which I will get right into later on if anyone is interested.


This is an agency that likes to claim yes to candidates, yet as the table in my statement reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I think that is something that no one has truly discussed much. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals that could not obtain them differently and to individuals whose planned investment is in fact less, according to the Federal Book, than the average mean total assets of all American households in 2007. Let me broaden on one of my observations.


My estimate based upon the capitalists' permit applications filed 2 years after the first investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not offer the type of data that we can make use of on this.


For every $100 of increased international financial investment that year, the EB program contributed one cent. Under a far more shaky statistical base, the initial applications of potential immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I expect your remarks and questions. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration technique team.




Divine functioned as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and after find out here that Performing Replacement Supervisor. He has functioned extensively with the EB-5 program secretive practice. He was elected, as I recognize, vice head of state of the Association to Spend in U.S.A., the nationwide sector association of regional.


Divine, we are delighted to have you here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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 a lot of, if all 10,000 slots were made use of, it would be 1 percent of the immigration annually to the USA. It is not near that yet, however it is growing and obtaining towards that. Specifically as USCIS, the agency that manages the program, has been making the guidelines more clear and the procedures more reasonable and clear for individuals who are organizing financial investments and for the capitalists who are spending, even more individuals have actually been eager and able to put initiative and money right into the procedure to find great tasks and establish them, and afterwards more financiers have actually been prepared to spend their cash and take the risk and utilize the cash to develop the jobs that is the point of the program.

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These jobs do not wait about for life, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they are all set to deny applications that are not certifying. And they do so, as was mentioned


The regional facility part of the program is not. It belongs to an appropriations bill that was passed in 1992, and because 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 Extra resources not nearer to the day of expiration in September.


The procedure takes a good while to develop a project and afterwards to obtain the financiers approved. And they do not want their cash flowing with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of tasks.

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I would certainly like to make clear that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 regulation that is component of the code. It just is a have a peek at these guys reality that a lot of the local centers that are pooling financial investments have actually established those in areas of high unemployment or in rural areas where fifty percent- million-dollar investments are allowed, and that makes good sense.