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First, the program is placed in a very weird and non-helpful administrative area for the excitement of worldwide financial investment in the USA. Second, its scale is all incorrect. We are offering away excessive for as well tiny of a financial investment. Even more, raising financial backing half a million dollars a tranche is, to claim the least, inefficient.


The regional centers, with their half-million plans, essentially damaged the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, ought to have to do with producing company entities, not passive financial investments. It must have to do with developing real jobs, not specify computations regarding the indirect creation of work, which is now component of the regulation.


Probably that is just one of the reasons why it has fallen short time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with intermediaries, both public and private. The program has more than its share of detractions, which I will certainly enter later if anybody is interested.


This is a firm that loves to state yes to applicants, however as the table in my statement shows, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that nobody has truly discussed a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to people that could not obtain them any kind of other means and to people whose scheduled financial investment is really much less, according to the Federal Book, than the ordinary mean web well worth of all American family members in 2007. Allow me increase on among my observations.


My price quote based on the investors' permit applications submitted 2 years after the very first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not supply the sort of data that we might use on this.


So for every single $100 of raised foreign investment that year, the EB program added one penny. Under a a lot more wobbly analytical base, the initial applications of prospective immigrant capitalists, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and inquiries. [The prepared statement of David North shows up as an entry for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice team.




Divine worked as Chief Guidance of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Performing Supervisor, and then Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive method. He was elected, as I understand, vice head of state of the Organization to Buy USA, the national market organization of local facilities.


Divine, we are happy to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the agency that manages the program, has actually been making the regulations clearer and the procedures much more sensible and clear for individuals who are arranging financial investments and for the investors that are spending, more individuals have wanted and able to place initiative and cash into the process to discover great tasks and establish them, and after that extra capitalists have actually been ready to spend their money and take the danger and check here utilize the cash to produce the work that is the point of the program.

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These tasks do not linger forever, and USCIS comprehends that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It belongs to an appropriations bill that was passed in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The procedure takes a great while to work up a job and afterwards to obtain the capitalists accepted. And they do not desire their cash flowing with till they have been accepted. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of tasks.

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I would certainly such as to clarify that the Regional Facility Program is not the same as the half-million-dollar thing. The concept 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 fact that a lot of the regional facilities that are pooling investments have established those in locations of high unemployment or in rural locations where half- million-dollar investments are permitted, which makes good sense.