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The program is positioned in an extremely strange and non-helpful administrative place for the stimulation of international investment in the United States. Second, its scale is all incorrect. We are handing out excessive for also tiny of a financial investment. Even more, increasing equity capital half a million dollars a tranche is, to say the least, ineffective.


The regional facilities, with their half-million plans, basically undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, ought to have to do with developing company entities, not easy financial investments. It must be concerning developing genuine jobs, not elaborate estimations about the indirect production of tasks, which is currently component of the legislation.


Perhaps that is one of the reasons why it has stopped working year after year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with intermediaries, both public and exclusive. The program has even more than its share of detractions, which I will obtain into later if anybody is interested.


This is a company that likes to say yes to candidates, but as the table in my statement reveals, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually really discussed a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and for good factor

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Seventh, in this program visas most likely to individuals who could not obtain them differently and to individuals whose organized financial investment is actually much less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Let me broaden on one of my monitorings.


My estimate based on the financiers' permit applications submitted 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 confirmed-- that is my estimate. USCIS does not offer the type of data that we can make use of on this.


So for every $100 of raised foreign investment that year, the EB program contributed one dime. Under a a lot more unsteady statistical base, the initial applications of would-be immigrant capitalists, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for listening to me. I look ahead to your comments and concerns. [The ready declaration of David North appears this website as an entry for the document.] 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 technique team.




Divine acted as Chief Guidance of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and then Acting Replacement Supervisor. He has worked extensively with the EB-5 program secretive technique. He was elected, as I understand, vice head of state of the Organization to Spend in United States, the nationwide industry organization of local.


Divine, we are thrilled to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the migration view website every year to the United States. It is not near that yet, however it is growing and obtaining towards that. Specifically as USCIS, the company that looks after the program, has actually been making the rules more clear and the processes much more rational and clear for the individuals that are arranging financial investments and for the investors that are spending, even more people have actually agreed and able to place initiative and money into the procedure to locate great tasks and develop them, and afterwards extra financiers have actually agreed to spend their cash and take the risk and make use of the money to create the work that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, actually, they prepare to refute applications that are not certifying. And they do so, as was mentioned


The local facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a good while to develop a task and after that to get the investors authorized. And they do not want their money moving with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already discouraging the advancement of tasks.

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I want to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is he said a feature of the normal EB-5 law that belongs to the code. It just is a truth that the majority of the local centers that are merging financial investments have actually established those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes good sense.