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First, the program is placed in a really odd and non-helpful bureaucratic area for the stimulation of global financial investment in the USA. Second, its scale is all incorrect. We are handing out also much for also little of an investment. Better, raising venture funding half a million dollars a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million plans, essentially undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should be regarding creating business entities, not easy investments. It must have to do with developing actual tasks, not specify computations concerning the indirect creation of tasks, which is now component of the regulation.


Probably that is among the factors why it has actually stopped working every year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well filled with intermediaries, both public and exclusive. The program has more than its share of rumors, which I will certainly enter into later if anybody is interested.


This is an agency that enjoys to claim yes to applicants, but as the table in my statement reveals, USCIS policemans have far more trouble with EB-5 applications than others. I assume that is something that no one has really spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely factor

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Seventh, in this program visas most likely to individuals who can not obtain them otherwise and to people whose scheduled financial investment is in fact much less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Allow me broaden on among my observations.


My quote based on the financiers' environment-friendly card applications submitted 2 years after the first financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not give the kind of information that we can utilize on this.


So for each $100 of enhanced international investment that year, the EB program contributed one dime. Under a a lot more shaky statistical base, the initial applications of prospective immigrant financiers, USCIS is informing reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I look ahead to your comments and concerns. [The prepared statement of David North looks like an entry for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method team.




Divine acted as Chief Counsel of the USA Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Director. He has worked extensively my site with the EB-5 program secretive practice. He was chosen, as I recognize, vice head of state of the Organization to Spend in U.S.A., the nationwide market association of regional centers.


Divine, we are happy to have you here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Particularly as USCIS, the firm that oversees the program, has actually been making the regulations clearer and the procedures a lot more sensible and clear for individuals who are arranging investments and for the financiers that are spending, even more people have wanted and able to put initiative and money right into the process to locate excellent tasks and create them, and after that a lot more capitalists have actually agreed to spend their money and take the threat and use the cash to produce the work that is the factor of the program.

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These jobs do not wait around for life, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, in truth, they are ready to reject applications that are not qualifying. And they do so, as was pointed out


The local facility part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to look what i found the date of expiry in September.


The process takes an excellent while to develop a webpage project and then to get the capitalists accepted. And they do not desire their money streaming with up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the advancement of jobs.

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I want to clarify 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 function of the normal EB-5 regulation that belongs to the code. It just is a fact that a lot of the regional centers that are pooling investments have actually established those in locations of high joblessness or in backwoods where half- million-dollar financial investments are allowed, which makes good sense.