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The program is placed in a very strange and non-helpful governmental place for the stimulation of global financial investment in the United States. Second, its range is all wrong. We are distributing too much for as well tiny of an investment. Additionally, increasing endeavor capital half a million bucks a tranche is, to claim the least, ineffective.


The local facilities, with their half-million schemes, essentially damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to have to do with developing business entities, not easy investments. It must have to do with creating real tasks, not specify calculations about the indirect creation of tasks, which is currently part of the regulation.


Probably that is just one of the reasons why it has actually failed time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also filled up with middlemen, both public and personal. The program has greater than its share of rumors, which I will get involved in later if any person is interested.


This is an agency that loves to state yes to applicants, however as the table in my statement shows, USCIS policemans have a lot extra trouble with EB-5 applications than others. I think that is something that nobody has actually actually discussed a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and for excellent reason

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Seventh, in this program visas go to individuals who might not obtain them any kind of various other means and to individuals whose organized investment is actually much less, according to the Federal Book, than the ordinary mean net worth of all American families in 2007. Let me expand on among my observations.


My quote based upon the investors' permit applications filed 2 years after the very first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not provide the kind of information that we can use on this.


So for each $100 of boosted international investment that year, the EB program added one dime. Under a far more wobbly statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I anticipate your comments and concerns. [The ready statement of David North looks like a submission for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique group.




Divine worked as Principal Advise of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice head of state of the Association to Invest in United States, the national sector organization of regional.


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


At many, if all 10,000 slots were used, it would be 1 percent of the migration yearly to the United States. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the firm that supervises the program, has actually been making the regulations clearer and the processes extra logical and clear for individuals that are organizing investments and for the investors that are investing, more people have actually agreed and able to put effort and money into the process to locate good jobs and establish them, and then extra investors have actually agreed to invest their money and take the risk and use the money to create the tasks that is the point of the program.

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These jobs do not wait around permanently, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, as a matter of fact, they are prepared to refute applications that are not qualifying. And they do so, as was discussed


The local facility component of the program is not. It is part of an appropriations bill that was passed in 1992, and given that then that program has been expanded five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes a good while to function up a job and afterwards to obtain the investors approved. And they do not want EB5 Regional Center Program their cash streaming with till they have been approved. And the specter of the expiry of this Regional Center Program in September is already discouraging the development of jobs.

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I would love to clarify that the Regional Center Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 regulation that becomes part of the code. It simply is a fact that many of the regional centers that are pooling financial investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes sense.