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The program is placed in an extremely strange and non-helpful governmental location for the stimulation of worldwide financial investment in the United States. Second, its range is all wrong. We are distributing excessive for too small of a financial investment. Further, increasing equity capital fifty percent a million dollars a tranche is, to state the least, ineffective.


The regional facilities, with their half-million plans, essentially damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, ought to be about developing service entities, not passive financial investments. It ought to have to do with producing actual tasks, not elaborate estimations regarding the indirect creation of tasks, which is now component of the regulation.


Possibly that is just one of the reasons it has actually stopped working every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also filled up with intermediaries, both public and personal. The program has greater than its share of scandals, which I will enter into later if any person is interested.


This is an agency that likes to claim yes to applicants, yet as the table in my testimony shows, USCIS police officers have far more problem with EB-5 applications than others. I think that is something that no one has actually really discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently factor

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Seventh, in this program visas most likely to people who could not get them any kind of other method and to individuals whose scheduled financial investment is actually less, according to the Federal Book, than the average mean net well worth of all American families in 2007. Let me expand on one of my monitorings.


My price quote based upon the investors' copyright applications filed 2 years after the first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not provide the sort of information that we might make use of on this.


For every $100 of raised international financial investment that year, the EB program contributed one penny. Under a far more shaky analytical base, the preliminary applications of would-be immigrant investors, USCIS is informing reporters that the degree of financial you can check here investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you click here for info for paying attention to me. I eagerly anticipate your remarks and inquiries. [The prepared statement of David North shows up as an entry for the record.] 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 firm's immigration method team.




Divine acted as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Director. He has functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Organization to Invest in United States, the national sector association of regional.


Divine, we are delighted to have you right here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were made use of, it would be 1 percent of the migration each year to the United States. It is not near that yet, yet it check over here is growing and obtaining toward that. Specifically as USCIS, the company that oversees the program, has actually been making the rules more clear and the procedures much more sensible and clear for individuals that are arranging investments and for the capitalists who are investing, even more individuals have been eager and able to place initiative and money right into the procedure to find great tasks and create them, and after that a lot more investors have agreed to spend their money and take the risk and utilize the cash to develop the jobs that is the point of the program.

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These tasks do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate 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 component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to develop a project and afterwards to obtain the investors accepted. And they do not want their money moving with up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of jobs.

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I wish 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 feature of the regular EB-5 law that becomes part of the code. It simply is a fact that many of the local centers that are merging investments have established those in places of high unemployment or in rural areas where half- million-dollar financial investments are allowed, and that makes good sense.