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The program is placed in an extremely odd and non-helpful bureaucratic area for the stimulation of international investment in the United States. Second, its scale is all incorrect. We are distributing way too much for also small of a financial investment. Better, increasing financial backing half a million bucks a tranche is, to claim the least, inefficient.


The local facilities, with their half-million plans, basically damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must be concerning developing company entities, not easy financial investments. It ought to have to do with producing genuine tasks, not elaborate computations regarding the indirect development of tasks, which is now component of the regulation.


Maybe that is among the reasons it has fallen short time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with intermediaries, both public and private. The program has more than its share of rumors, which I will certainly get involved in later on if anyone is interested.


This is an agency that likes to say yes to candidates, but as the table in my testimony shows, USCIS officers have far more problem with EB-5 applications than others. I assume that is something that nobody has really discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to people who could not get them differently and to people whose organized investment is in fact less, according to the Federal Get, than the average mean total assets of all American families in 2007. Let me broaden on among my observations.


My price quote based on the investors' eco-friendly card applications submitted 2 years after the first financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not give the type of information that we can use on this.


For every $100 of enhanced international investment that year, the EB program added one cent. Under a far more wobbly statistical base, the first applications of would-be immigrant financiers, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I anticipate your comments and inquiries. [The ready statement of David North shows up 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 acted as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. He has actually worked thoroughly with the EB-5 program in personal technique. He was next chosen, as I understand, vice president of the Organization to Spend in U.S.A., the nationwide sector association of regional centers.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., go to these guys CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, however it is growing and obtaining towards that. Especially as USCIS, the company that looks after the program, has actually been making the regulations more clear and the processes extra logical and clear for individuals that are organizing investments and for the investors who are spending, even more people have actually been ready and able to put initiative and cash into the process to find good projects and create them, and afterwards more capitalists have actually been willing to invest their cash and take the danger and make use of the cash to create the jobs that is the factor of the program.

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These tasks do not linger for life, and USCIS understands that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, actually, they prepare to refute applications other that are not qualifying. And they do so, as was pointed out


The regional facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a task and afterwards to obtain the investors accepted. And they do not desire their cash flowing with up until they have been approved. And the specter of the expiry of this Regional Facility Program in September is already preventing the advancement of projects.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 legislation that belongs to the code. It simply is a reality that a lot of the local centers that are pooling financial investments have actually set those in places of high joblessness or in rural areas where fifty percent- million-dollar investments are permitted, and that makes good sense.