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The program is placed in a very strange and non-helpful bureaucratic place for the excitement of international financial investment in the United States. Second, its range is all wrong. We are distributing way too much for too tiny of a financial investment. Further, elevating venture funding fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional facilities, with their half-million plans, basically undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be concerning producing service entities, not easy financial investments. It needs to be regarding producing actual work, not elaborate computations about the indirect production of tasks, which is currently component of the legislation.


Maybe that is among the reasons it has stopped working year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also filled with middlemen, both public and private. The program has greater than its share of scandals, which I will certainly enter later if any person is interested.


This is a company that loves to claim yes to applicants, yet as the table in my testimony shows, USCIS officers have a lot more problem with EB-5 applications than others. I think that is something that no one has actually actually discussed a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently factor

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Seventh, in this program visas go to individuals who might not obtain them otherwise and to individuals whose planned financial investment is actually less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Allow me expand on one of my observations.


My estimate based upon the capitalists' copyright applications filed 2 years after the initial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not provide the sort of information that we might utilize on this.


So for each $100 of boosted foreign investment that year, the EB program added one dime. Under a a lot more wobbly statistical base, the initial applications of prospective immigrant capitalists, USCIS is informing reporters that the degree 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 eagerly anticipate your comments and questions. [The prepared statement of David North looks like an entry for the record.] Chairman Leahy. Thanks. Our following 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 served as Chief Advice of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has actually functioned thoroughly with the EB-5 program in private method. He was elected, as I understand, vice head of state of the Organization to Spend in USA, the nationwide industry association of regional 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 U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 ports were utilized, it would be 1 percent of the immigration more info every year to the USA. It is not near that yet, however it is expanding and getting towards that. Especially as USCIS, the agency that looks after the program, has been making the rules more clear and the procedures much more reasonable and clear for individuals that are arranging financial investments and for the investors who are spending, even more individuals have agreed and able to put effort and money right into the procedure to find excellent jobs and develop them, and after that extra capitalists have agreed to invest their cash and take the threat and make use of the cash to produce the tasks that is the factor of the program.

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These tasks do not wait about permanently, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, actually, they are prepared to refute applications that are not certifying. And they do so, as was mentioned


The local center part of the program is not. It is part of an appropriations bill that was established in 1992, and given that then that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to function up a project and afterwards to obtain the capitalists authorized. And they do not want their cash streaming through till they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already preventing the development of tasks.

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I wish to make clear 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 feature of the regular EB-5 legislation that belongs to the code. It just is a reality that a lot of the regional centers that are pooling investments have set those in places of high joblessness or in rural areas where fifty percent- million-dollar investments are allowed, and that makes sense.