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The program is placed in an extremely strange and non-helpful administrative area for the excitement of global financial investment in the United States. Second, its scale is all wrong. We are handing out excessive for too small of a financial investment. Better, elevating endeavor capital half a million dollars a tranche is, to say the least, inefficient.


The local centers, with their half-million systems, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should be about developing organization entities, not easy investments. It needs to be regarding creating real tasks, not elaborate computations about the indirect development of jobs, which is now part of the regulation.


Perhaps that is among the factors why it has stopped working time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also filled with middlemen, both public and personal. The program has more than its share of rumors, which I will enter into later if any person is interested.


This is an agency that likes to claim yes to candidates, but as the table in my statement reveals, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals who could not get them any various other means and to individuals whose planned investment is actually much less, according to the Federal Book, than the ordinary mean web well worth of all American families in 2007. Let me broaden on one of my observations.


My price quote based on the capitalists' environment-friendly card applications filed 2 years after the very first financial investment-- these are the strong ones that stay and are accepted. 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 might utilize on this.


For every $100 of boosted international financial investment that year, the EB program added one penny. Under a far more wobbly analytical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I anticipate your comments and concerns. [The ready declaration of David North appears as 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 immigration method group.




Divine worked as Principal Advise of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state try this of the Association to Purchase United States, the national market organization of regional centers.


DECLARATION OF ROBERT C. DIVINE, LAWYER, 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, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and getting towards that. Particularly as USCIS, the company that oversees the program, has been making the regulations clearer and the procedures more reasonable and clear for the individuals who are arranging investments and for the investors that are investing, more individuals have been eager and able to put initiative and money into site web the procedure to locate good projects and create them, and after that more capitalists have wanted to spend their money and take the risk and utilize the cash to develop the jobs that is the point of the program.

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These jobs do not wait around permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are Extra resources relaxing their analysis, and, in fact, they are prepared to deny applications that are not certifying. And they do so, as was stated


The regional center component of the program is not. It is part of an appropriations expense that was passed in 1992, and considering that then that program has been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to develop a job and after that to get the financiers accepted. And they do not want their money streaming via until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already preventing the growth of projects.

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I would love to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 legislation that belongs to the code. It simply is a fact that many of the regional centers that are merging financial investments have actually set those instead of high joblessness or in country areas where half- million-dollar investments are allowed, which makes good sense.