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The program is placed in an extremely odd and non-helpful governmental area for the stimulation of international investment in the United States. Second, its range is all incorrect. We are handing out excessive for also tiny of an investment. Better, increasing venture resources half a million bucks a tranche is, to say the least, ineffective.


The local centers, with their half-million schemes, essentially damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to be about creating company entities, not passive investments. It must be concerning creating real tasks, not specify computations concerning the indirect creation of tasks, which is currently part of the regulation.


Possibly that is just one of the reasons why it has failed every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with middlemen, both public and personal. The program has even more than its share of rumors, which I will obtain into later on if anyone is interested.


This is an agency that loves to state yes to applicants, however as the table in my statement shows, USCIS police officers have far more problem with EB-5 applications than others. I assume that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and for great reason

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Seventh, in this program visas go to individuals that might not get them otherwise and to people whose organized financial investment is actually less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Let me increase on among my observations.


My quote based upon the financiers' copyright applications submitted 2 years after the first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not supply the type of information that we could use on this.


For every $100 of boosted international investment that year, the EB program added one penny. Under a much extra unsteady analytical base, the preliminary applications of potential immigrant financiers, USCIS is informing reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I anticipate your remarks and inquiries. [The ready statement of David North shows up as an entry for the record.] Chairman Leahy. Thank you. Our following 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 group.




Divine functioned as Principal Advice of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I comprehend, vice head of state of the Organization to Invest in United States, the nationwide market association of local.


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


At many, if all 10,000 slots were used, it would check here be 1 percent of the migration annually to the USA. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the firm that manages the program, has been making the policies clearer and the processes extra reasonable and clear for individuals who are arranging investments and for the capitalists that are investing, more people have actually wanted and able to place effort and money right into the procedure to find great jobs and develop them, and afterwards extra investors have wanted to invest their cash and take the danger and utilize the cash to produce the jobs that is the point of the program.

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These jobs do not wait about forever, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of 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 becomes part of an appropriations expense that was established in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes a good while to function up a task and after that to get the financiers accepted. And they do not desire their cash streaming via until they have been accepted. And the specter of the expiry of this Regional Center Program in September is currently dissuading the advancement of jobs.

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I wish to make clear 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 normal EB-5 regulation that belongs to the code. It simply is a reality that many of the local centers that are merging investments have set those in places of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes sense.