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First, the program is put in a very weird and non-helpful bureaucratic place for the excitement of international investment in the United States. Second, its scale is all incorrect. We are distributing excessive for also tiny of an investment. Better, raising equity capital half a million dollars a tranche is, to claim the least, inefficient.


The regional facilities, with their half-million plans, basically undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to be concerning producing business entities, not easy investments. It must have to do with developing genuine work, not clarify estimations regarding the indirect production of tasks, which is currently part of the regulation.


Possibly that is one of the reasons it has failed year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will enter into later on if anybody is interested.


This is a company that loves to state yes to candidates, but as the table in my testimony shows, USCIS police officers have much more difficulty with EB-5 applications than others. I assume that is something that nobody has actually really spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently reason

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Seventh, in this program visas most likely to people who might not get them differently and to individuals whose planned investment is really less, according to the Federal Get, than the average mean total assets of all American families in 2007. Let me broaden on one of my monitorings.


My price quote based on the capitalists' permit applications filed 2 years after the very first investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not supply the type of data that we can utilize on this.


So for each $100 of boosted international investment that year, the EB program contributed one dime. Under a much a lot more unsteady statistical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I expect your comments and questions. [The prepared declaration of David North appears as an entry for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique team.




Divine offered as Principal Advice of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was chosen, as I recognize, vice president of the Organization to Invest in USA, the nationwide sector organization of regional.


Divine, we are delighted to have you below. Please proceed, 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. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the agency that looks after the program, has been making the policies clearer and the processes more rational and clear for the people that are organizing financial investments and for the capitalists who are investing, more individuals have agreed and able to put initiative and money right into the procedure to find great tasks and develop them, and after that extra financiers have actually wanted to invest their money and take the danger and make use of the cash to create the work that is the point of the program.

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These tasks do not wait about permanently, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, actually, they website prepare 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 since then that program has been extended five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes a great while to develop a task and afterwards to get the capitalists authorized. And they do not desire their cash flowing through till they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the growth of jobs.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It simply is a fact that many of the local centers that are merging financial investments have actually established those in places of high joblessness or in country locations where fifty percent- million-dollar financial investments are enabled, and that makes good sense.