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The program is positioned in a really weird and non-helpful governmental area for the stimulation of international investment in the United States. Second, its scale is all wrong. We are handing out also much for too little of a financial investment. Better, elevating equity capital half a million dollars a tranche is, to say the least, inefficient.


The regional centers, with their half-million schemes, essentially damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to be concerning producing service entities, not easy investments. It needs to have to do with developing genuine work, not specify computations concerning the indirect production of jobs, which is now component of the regulations.


Probably that is one of the reasons it has actually fallen short year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly enter into later if anyone is interested.


This is an agency that enjoys to say yes to applicants, however as the table in my testament shows, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually really discussed a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and forever reason

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Seventh, in this program visas most likely to individuals who might not get them otherwise and to individuals whose scheduled financial investment is in fact much less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Allow me expand on among my monitorings.


My estimate based upon the capitalists' permit applications submitted 2 years after the very first investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not offer the kind of information that we can utilize on this.


So for each $100 of enhanced international financial investment that year, the EB program added one penny. Under a far more wobbly analytical base, the preliminary official source applications of would-be immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. I look onward to your remarks and inquiries. [The prepared statement of David North looks like an entry for the document.] 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 worked as Principal Counsel of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has actually worked thoroughly with the EB-5 program in exclusive method. He was chosen, as I comprehend, vice head of state of the Organization to Spend in U.S.A., the nationwide industry organization of local centers.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN page THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 ports 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 expanding and obtaining toward that. Specifically as USCIS, the agency that supervises the program, has been making the guidelines clearer and the processes much more logical and clear for the people who are organizing financial investments and for the capitalists that are spending, even more people have wanted and able to put initiative and cash into the procedure to find great tasks and establish them, and afterwards more financiers have actually agreed to spend their cash and take the threat and make use of the cash to create the tasks that is the factor of the program.

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These jobs do not wait about for life, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, in fact, they prepare to reject applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since that program has been prolonged 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 financiers accepted. And they do not desire their cash moving this hyperlink via until they have been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the advancement of jobs.

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I wish to clarify that the Regional Facility 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 regulation that belongs to the code. It just is a reality that a lot of the regional centers that are merging investments have established those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes good sense.