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The program is placed in a very strange and non-helpful bureaucratic area for the stimulation of global investment in the United States. Second, its scale is all wrong. We are handing out too much for too tiny of a financial investment. Additionally, raising financial backing half a million dollars a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million plans, essentially undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to have to do with creating service entities, not passive investments. It must be concerning creating actual work, not specify estimations about the indirect development of jobs, which is currently component of the regulations.


Possibly that is just one of the factors why it has actually fallen short year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with middlemen, both public and personal. The program has even more than its share of rumors, which I will enter later if anybody is interested.


This is a firm that enjoys to state yes to applicants, but as the table in my testament shows, USCIS officers have much a lot more trouble with EB-5 applications than others. I assume that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas go to people who might not get them any type of other means and to people whose organized investment is actually less, according to the Federal Book, than the ordinary mean web worth of all American family members in 2007. Allow me expand on one of my monitorings.


My estimate based on the investors' permit applications submitted 2 years after the very first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not provide the kind of information that we could use on this.


For every $100 of raised foreign investment that year, the EB program contributed one cent. Under a far more wobbly statistical base, the first applications of would-be immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for listening to me. I expect your comments and inquiries. [The prepared declaration of David North appears as a submission 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 company's migration technique team.




Divine acted as Principal Advise of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has worked extensively with the EB-5 program secretive practice. He was chosen, as I recognize, vice head of state of the Organization to Invest in USA, the national market association 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, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the company that my site looks after the program, has actually been making the regulations clearer and the procedures more logical and clear for individuals who are organizing financial investments and for the investors who are spending, more individuals have actually been eager and able to place initiative and cash right into the procedure to discover good More hints jobs and develop them, and after that more capitalists have actually agreed to invest their money and take the risk and utilize the cash to produce the jobs 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 up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, actually, they are navigate to these guys prepared to refute applications that are not qualifying. And they do so, as was discussed


The local center component of the program is not. It is part of an appropriations bill that was enacted in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes an excellent while to develop a project and then to get the investors approved. And they do not want their cash streaming via till they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the advancement of tasks.

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I would love to clear up that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 regulation that is component of the code. It just is a reality that the majority of the regional facilities that are pooling financial investments have established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.