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The program is positioned in a very odd and non-helpful administrative area for the excitement of global investment in the United States. Second, its scale is all incorrect. We are handing out as well much for also small of an investment. Even more, elevating equity capital half a million bucks a tranche is, to say the least, inefficient.


The regional facilities, with their half-million systems, basically damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be about creating service entities, not passive investments. It needs to have to do with creating genuine work, not specify calculations concerning the indirect development of tasks, which is now component of the legislation.


Possibly that is one of the factors why it has stopped working time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with middlemen, both public and personal. The program has even more than its share of scandals, which I will certainly obtain into later on if anyone is interested.


This is a company that likes to claim yes to applicants, yet as the table in my statement reveals, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that no one has truly chatted around much. EB5 Regional Center Program. There are high prices of inner denials in this program and forever factor

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Seventh, in this program visas go to people that could not obtain them any various other way and to people whose organized investment is actually much less, according to the Federal Book, than the average mean web worth of all American families in 2007. Allow me broaden on among my observations.


My price quote based on the capitalists' eco-friendly card applications submitted 2 years after the initial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not provide the sort of data that we might use on this.


For every $100 of raised foreign financial investment that year, the EB program contributed one cent. Under a far more shaky analytical base, the preliminary applications of potential immigrant financiers, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I look onward to your comments and concerns. [The ready statement of David North looks like an entry for the record.] Chairman Leahy. Thanks. Our next 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 team.




Divine functioned as Principal Counsel of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Supervisor. He has functioned extensively with the EB-5 program in exclusive technique. He was elected, as I recognize, vice head of state of the Organization to Invest in United States, the nationwide sector association of local facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 ports were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, however it is growing and getting towards that. Particularly as USCIS, the agency that manages the program, has been making the policies clearer and the procedures much more sensible and clear for individuals that are organizing investments and for the capitalists who are spending, more people have been eager and able to place effort and money right into the procedure to find great tasks and develop them, and afterwards more investors have wanted to spend their money and take the danger and utilize the cash to create the jobs that is the click here factor of the program.

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These tasks do not linger for life, and USCIS comprehends that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, actually, they prepare to reject applications that are not certifying. And they do so, as was discussed


The regional center part of the program is not. It belongs to an appropriations expense that was enacted in 1992, and given that then that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes an excellent while to work up a job and after that to get the capitalists authorized. And they do not want their money moving via till they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently preventing the development of tasks.

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I would like to clarify that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 regulation that becomes part of the code. It just is a fact that a lot of the local centers that are merging financial investments have set those in places of high unemployment or in rural areas where half- million-dollar financial investments are enabled, which makes good sense.