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Initially, the program is placed in a really odd and non-helpful governmental place for the excitement of global investment in the United States. Second, its scale is all wrong. We are distributing excessive for too tiny of a financial investment. Additionally, increasing equity capital fifty percent a million bucks a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million schemes, essentially undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with creating organization entities, not passive financial investments. It must have to do with creating real work, not specify computations regarding the indirect development of jobs, which is now part of the regulations.


Maybe that is among the reasons that it has stopped working year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well filled with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will enter into later on if anyone is interested.


This is a firm that loves to claim yes to candidates, however as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually really discussed much. EB5 Regional Center Program. There are high rates of internal denials in this program and completely reason

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Seventh, in this program visas most likely to people who might not obtain them any various other way and to individuals whose planned investment is really less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me increase on among my observations.


My quote based on the capitalists' permit applications submitted 2 years after the very first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not give the sort of data that we might make use of on this.


For every $100 of increased foreign investment that year, the EB program added one dime. Under a much more wobbly analytical base, the preliminary applications of prospective immigrant investors, USCIS is telling journalists that the level of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I anticipate your remarks and inquiries. [The prepared statement 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 company's migration method team.




Divine acted as Principal Advise of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Deputy Director. He has worked thoroughly with the EB-5 program secretive practice. He was elected, as I understand, vice president of the Organization to Spend in USA, the nationwide sector organization of regional.


Divine, we are happy to have you below. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the company that looks after the program, has been making the regulations more clear and the processes a lot more logical and clear for the individuals who are arranging financial investments and for the capitalists who are spending, even more individuals have actually agreed and able to place effort and cash into the process to discover good tasks and establish them, and afterwards more financiers have actually wanted to invest their money and take the risk and make use of the cash to create the work that is the point of the program.

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These projects do not wait around forever, and USCIS comprehends that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The local center part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and because then that program has been extended 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 day of expiration in September.


The process takes an excellent while to develop a project and after that get more info to get the capitalists accepted. And they do not want their money moving with until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the growth of tasks.

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I would such as to clarify that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 law that belongs to the code. It just is a truth that the majority of the local centers that are pooling investments have actually established those in areas of high unemployment or in country locations where fifty percent- million-dollar investments are enabled, and that makes good sense.