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Initially, the program is positioned in an extremely weird and non-helpful administrative area for the stimulation of international investment in the United States. Second, its range is all wrong. We are handing out also much for also tiny of an investment. Even more, elevating financial backing fifty percent a million dollars a tranche is, to state the least, ineffective.


The regional facilities, with their half-million systems, essentially damaged the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should have to do with creating business entities, not easy investments. It should be about creating actual tasks, not clarify calculations about the indirect creation of work, which is currently component of the regulation.


Probably that is just one of the reasons that it has actually fallen short year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will certainly enter into later on if anyone is interested.


This is an agency that likes to state yes to applicants, however as the table in my testimony reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has really discussed much. EB5 Regional Center Program. There are high prices of interior denials in this program and for excellent factor

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Seventh, in this program visas go to individuals who could not get them differently and to people whose scheduled investment is in fact less, according to the Federal Book, than the typical mean internet worth of all American families in 2007. Let me expand on one of my observations.


My estimate based on the financiers' eco-friendly card applications submitted 2 years after the very first investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not give the kind of data that we might make use of on this.


For every $100 of raised foreign investment that year, the EB program added one dime. Under a far more unsteady analytical base, the preliminary applications of potential immigrant capitalists, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I anticipate your comments and concerns. [The ready statement of David North looks like an entry 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 team.




Divine offered as Chief Advise of the USA Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Director. He has actually worked thoroughly with the EB-5 program in exclusive method. He was chosen, as I understand, vice president of the Organization to Invest in United States, the nationwide industry association of regional.


Divine, we are happy to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were utilized, it would be 1 percent of the immigration annually to the USA. It is not near that yet, however it is expanding and obtaining toward that. Especially more info as USCIS, the agency that manages the program, has been making the rules clearer and the processes a lot more reasonable and clear for the people who are organizing financial investments and for the capitalists who are spending, more people have agreed and able to place initiative and cash into the procedure to locate good projects and develop them, and then extra capitalists have actually been eager to spend their cash and take the risk and use the cash to create the jobs that is the point of the program.

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These tasks do not wait around permanently, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was discussed


The regional center part of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes a great while to function up a task and afterwards to obtain the financiers accepted. And they do not want their cash streaming with till they have been authorized. And the specter of the expiry of this Regional Center Program in September is already preventing the advancement of jobs.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 regulation that becomes part of the code. It just is a truth that a lot of the regional centers that are pooling investments have actually established those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, which makes feeling.