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The program is placed in a very strange and non-helpful governmental place for the stimulation of international investment in the United States. Second, its scale is all wrong. We are handing out excessive for as well small of a financial investment. Further, raising endeavor funding half a million dollars a tranche is, to claim the least, inefficient.


The regional centers, with their half-million schemes, essentially damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should have to do with developing company entities, not passive investments. It needs to be about developing genuine jobs, not specify estimations concerning the indirect creation of tasks, which is now part of the legislation.


Possibly that is just one of 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 up with intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will enter into later on if any person is interested.


This is an agency that likes to state yes to candidates, but as the table in my statement shows, USCIS officers have far more problem with EB-5 applications than others. I think that is something that nobody has actually really spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals who might not obtain them differently and to individuals whose planned financial investment is in fact less, according to the Federal Get, than the average mean total assets of all American families in 2007. Let me broaden on one of my monitorings.


My quote based on the financiers' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not offer the sort of information that we can use on this.


So for every single $100 of raised international investment that year, the EB program contributed one dime. Under a much more unsteady analytical base, the initial applications of would-be immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I expect your remarks and concerns. [The ready declaration of David North looks like an entry for the document.] Chairman Leahy. Thanks. 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 migration technique team.




Divine functioned as Principal Advice of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Deputy Director. He has worked thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice president of the Organization to Spend in U.S.A., the nationwide sector organization of regional centers.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 slots were made use of, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the company that oversees the program, has actually been making the rules more clear and the processes more logical and clear for the individuals who are organizing financial investments and for the capitalists who are spending, more individuals have wanted and able to put effort and cash right into the process to discover good projects and establish them, and after that a lot more financiers have actually been eager to invest their cash and take the risk and make use of the cash to create the work that is the factor of the program.

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These projects do not wait around permanently, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The regional facility component of the program is not. It is part of an appropriations bill that was passed in 1992, and because then that program has actually been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to work up a job and then to get the financiers accepted. And they do not want their money moving via up until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently preventing the advancement of tasks.

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I would love to clarify that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 law that belongs to the code. It simply is a truth that many of the local centers that are pooling financial investments have set those in locations of read more high joblessness or in rural locations where half- million-dollar investments are permitted, which makes feeling.