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First, the program is placed in an extremely weird and non-helpful bureaucratic place for the excitement of worldwide financial investment in the USA. Second, its range is all wrong. We are giving away way too much for also little of a financial investment. Better, raising equity capital fifty percent a million bucks a tranche is, to claim the least, inefficient.


The local facilities, with their half-million schemes, basically undercut the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to be regarding creating company entities, not passive financial investments. It ought to have to do with creating actual tasks, not elaborate estimations concerning the indirect creation of work, which is now part of the regulation.


Maybe that is one of the reasons why it has fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has even more than its share of rumors, which I will obtain right into later on if any person is interested.


This is a company that enjoys to say yes to candidates, but as the table in my testament shows, USCIS police officers have a lot more problem with EB-5 applications than others. I believe that is something that nobody has actually talked about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently reason

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Seventh, in this program visas go to people who can not obtain them otherwise and to individuals whose organized investment is really much less, according to the Federal Get, than the average mean total assets of all American families in 2007. Allow me increase on among my observations.


My quote based on the financiers' permit applications submitted 2 years after the first financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not provide the kind of information that we can utilize on this.


So for every single $100 of raised international financial investment that year, the EB program added one cent. Under a much more unsteady analytical base, the preliminary applications of would-be immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thanks for listening to me. I expect your comments and concerns. [The prepared statement of David North looks like an entry for the record.] 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 company's immigration practice group.




Divine served as Principal Guidance of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Director, and then Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program in exclusive method. He was elected, as I understand, vice president of the Organization to Purchase USA, the national sector organization of local facilities.


Divine, we are thrilled to have you below. Please go on, sir. DECLARATION 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. Thank you for having me.


At many, if all 10,000 slots were made use of, it would be 1 percent of the migration yearly to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the company that supervises the program, has been making the guidelines more clear and the procedures a lot more rational and clear for individuals who are arranging investments and for the investors that are investing, even more people have actually agreed and able to put initiative and cash right into the process to discover good jobs and establish them, and after that more capitalists have wanted to invest their cash and take the danger and use the cash to produce 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 attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That website does not suggest that they are unwinding their scrutiny, and, as a matter of fact, they are prepared to deny applications that are not certifying. And they do so, as was pointed out


The regional facility component of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since 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 an excellent while to develop a job and afterwards to get the investors approved. And they do not want their money moving through until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the growth of tasks.

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I wish to clear up 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 function of the regular EB-5 regulation that is part of the code. It just is a truth that most of the local centers that are pooling investments have actually established those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, which makes good sense.