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First, the program is positioned in a really weird and non-helpful governmental area for the stimulation of global financial investment in the USA. Second, its scale is all wrong. We are giving away way too much for too little of a financial investment. Further, raising endeavor resources fifty percent a million bucks a tranche is, to state the least, ineffective.


The regional centers, with their half-million systems, basically undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must be about developing service entities, not passive investments. It should be concerning creating genuine tasks, not specify computations regarding the indirect development of jobs, which is now component of the legislation.


Probably that is among the reasons that it has actually fallen short time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of intermediaries, both public and private. The program has greater than its share of scandals, which I will get involved in later on if anybody is interested.


This is a company that enjoys to claim yes to applicants, however as the table in my statement shows, USCIS policemans have a lot more problem with EB-5 applications than others. I believe that is something that no one has actually truly discussed much. EB5 Regional Center Program. There are high prices of interior denials in this program and for great factor

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Seventh, in this program visas most likely to individuals that might not obtain them otherwise and to people whose organized investment is in fact much less, according to the Federal Book, than the typical mean web worth of all American families in 2007. Allow me increase on one of my observations.


My estimate based upon the investors' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the kind of information that we could make use of on this.


So for each $100 of raised international investment that year, the EB program contributed one cent. Under a much more unsteady statistical base, the preliminary applications of would-be immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I anticipate your remarks and questions. [The prepared declaration of David North appears as an entry for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method team.




Divine acted as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Replacement Supervisor. He has actually functioned extensively with the EB-5 program in exclusive technique. He was chosen, as I recognize, vice president of the Organization to Invest in U.S.A., the nationwide industry organization of regional.


Divine, we are thrilled 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, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is growing and obtaining towards that. Especially as USCIS, the agency that oversees the program, has actually been making the regulations more clear and the processes extra reasonable and clear for the individuals who are arranging investments and for the investors who are spending, even more people have wanted and able to place initiative and money right into the procedure to locate great tasks and establish them, and afterwards extra investors have actually wanted to invest their money and take the danger and utilize the money to create the work that is the factor of the program.

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These tasks do not EB5 Regional Center Program linger forever, and USCIS comprehends that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The regional facility component of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes an excellent while to function up a project and afterwards to get the investors authorized. And they do not want their cash moving via until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the advancement of projects.

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I would such as to clarify that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 law that belongs to the code. It just is a fact that a lot of the local facilities that are merging investments have established those in places of high unemployment or in country locations where half- million-dollar financial investments are enabled, and that makes feeling.