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Initially, the program is placed in a really odd and non-helpful administrative area for the excitement of international investment in the USA. Second, its scale is all incorrect. We are handing out way too much for also little of a financial investment. Even more, increasing equity capital half a million bucks a tranche is, to state the least, inefficient.


The local centers, with their half-million plans, essentially damaged the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to have to do with creating business entities, not passive financial investments. It must have to do with developing real jobs, not specify estimations regarding the indirect production of work, which is now component of the regulations.


Perhaps that is one of the reasons why it has failed every year 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 intermediaries, both public and personal. The program has greater than its share of detractions, which I will certainly get involved in later if anyone is interested.


This is a company that likes to say yes to candidates, yet as the table in my testimony reveals, USCIS police officers have a lot a lot more problem with EB-5 applications than others. I think that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and for good reason

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Seventh, in this program visas go to people that might not obtain them differently and to people whose scheduled financial investment is really less, according to the Federal Book, than the average mean net worth of all American families in 2007. Allow me broaden on one of my monitorings.


My price quote based upon the financiers' copyright applications filed 2 years after the initial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not provide the kind of information that we might use on this.


So for every single $100 of enhanced international financial investment that year, the EB program contributed one dime. Under a a lot more shaky analytical base, the preliminary applications of potential immigrant capitalists, USCIS is telling journalists 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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Thanks for listening to me. I expect your remarks and questions. [The prepared statement of David North shows up as an entry for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice group.




Divine worked as Chief Counsel of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Supervisor. He has actually worked thoroughly with the EB-5 program secretive method. He was elected, as I comprehend, vice head of state of the Association to Spend in USA, the national market organization of local centers.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, click over here AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 slots were why not try this out used, it would be 1 percent of the immigration each year to the United States. It is not near that yet, but it is expanding and obtaining toward that. Particularly as USCIS, the company that oversees the program, has been making the policies more clear and the processes a lot more sensible and clear for individuals that are arranging investments and for the capitalists who are spending, even more people have actually wanted and able to put effort and money right into the process to find great projects and establish them, and then more investors have actually been ready to invest their money and take the danger and utilize the money to create the jobs that is the factor of the program.

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These tasks do not wait around permanently, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, in truth, 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 is part of an appropriations costs that was passed in 1992, and ever since that program has been expanded 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 day of expiry in September.


The procedure takes a good while to function up a project and then to get the financiers accepted. And they do not desire their money moving via up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently inhibiting 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 point. The concept of important link half a million or a million is a feature of the routine EB-5 law that belongs to the code. It simply is a reality that many of the local facilities that are pooling investments have actually set those in areas of high joblessness or in country locations where half- million-dollar financial investments are enabled, and that makes feeling.