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The program is placed in a very odd and non-helpful bureaucratic location for the stimulation of international financial investment in the United States. Second, its scale is all wrong. We are distributing excessive for as well tiny of an investment. Further, elevating equity capital fifty percent a million dollars a tranche is, to state the least, inefficient.


The local centers, with their half-million systems, basically damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should have to do with creating service entities, not passive investments. It ought to have to do with producing actual jobs, not specify computations about the indirect development of tasks, which is currently component of the regulations.


Perhaps that is just one of the reasons it has actually fallen short every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too full of intermediaries, both public and personal. The program has more than its share of detractions, which I will get involved in later if any person is interested.


This is a company that loves to claim yes to applicants, but as the table in my testimony shows, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high prices of interior rejections in this program and completely reason

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Seventh, in this program visas go to people that could not obtain them differently and to people whose planned investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Let me broaden on among my monitorings.


My price quote based on the financiers' environment-friendly card applications submitted 2 years after the initial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not offer the type of data that we might make use of on this.


For every $100 of raised international financial investment that year, the EB program added one dime. Under a much extra unsteady analytical base, the first applications of prospective immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for listening to me. I look onward to your remarks and inquiries. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thanks. 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 migration method group.




Divine acted as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. He has actually worked thoroughly with the EB-5 program in private technique. He was elected, as I understand, vice president of the Association to Invest in United States, the national sector association of local.


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


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the agency that looks after the program, has been making the regulations more clear and the procedures more logical and clear for the individuals that are arranging financial investments and for the capitalists that are investing, even more people have actually agreed and able to put effort and money right into the process to find great projects and establish them, and after that much more capitalists have actually agreed to invest their cash and take the risk and make use of the cash to create 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 trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, in fact, they are prepared to deny applications that are not qualifying. And they do so, as check here was pointed out


The regional center part of the program is not. It is part of an appropriations bill that was established in 1992, and given that then that program has been prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes a great while to function up a job and then to get the capitalists approved. And they do not desire their money flowing through up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already inhibiting the advancement of tasks.

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I would love to clear up that the Regional Center Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 legislation that belongs to the code. It just is a fact that a lot of the local centers that are merging investments have actually established those in areas of high joblessness or in rural locations where fifty percent- million-dollar investments are permitted, which makes sense.