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The program is positioned in a very odd and non-helpful bureaucratic area for the excitement of international financial investment in the United States. Second, its scale is all incorrect. We are offering away way too much for too tiny of a financial investment. Better, increasing endeavor capital half a million bucks a tranche is, to state the least, ineffective.


The regional centers, with their half-million schemes, basically undercut the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to be regarding developing service entities, not passive investments. It should be about producing actual jobs, not elaborate computations about the indirect development of work, which is currently part of the regulations.


Maybe that is just one of the reasons why it has stopped working every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too filled up with middlemen, both public and exclusive. The program has even more than its share of detractions, which I will enter into later on if anybody is interested.


This is an agency that enjoys to state yes to applicants, however as the table in my testimony reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas go to people that could not obtain them otherwise and to people whose scheduled financial investment is in fact much less, according to the Federal Reserve, than the ordinary mean internet well worth of all American families in 2007. Allow me increase on one of my monitorings.


My price quote based on the capitalists' permit applications submitted 2 years after the first 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 estimate. USCIS does not supply the type of information that we might use on this.


So for every single $100 of increased international investment that year, the EB program added one dime. Under a far more unsteady analytical base, the first applications of potential immigrant capitalists, USCIS is telling reporters that the degree of financial investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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




Divine worked as Chief Counsel of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and after that web link Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program in personal practice. He was elected, as I recognize, vice head of state of the Association to Invest in USA, the nationwide market organization of regional facilities.


Divine, we are happy to have you right here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, however it is growing and getting toward that. Especially as USCIS, the company that looks after the program, has actually been making the policies more clear and the processes much more logical and clear for individuals who are organizing financial investments and for the capitalists who are investing, more individuals have actually wanted and able to place effort and cash right into the process to find good tasks and create them, and then much more investors have actually been eager to spend their money and take the threat and make use of the cash to create the work that is the point of the program.

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These tasks do not wait around for life, and USCIS comprehends that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to develop a task and afterwards to obtain the capitalists accepted. And they do not desire their money moving with until they have been accepted. And the specter of the expiry of this Regional Center visit our website Program in September is currently discouraging the growth of projects.

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I would certainly such as to make clear that the Regional Facility Program is not the same as the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 regulation that becomes part of the code. It simply is a truth that the majority of the regional centers that are pooling financial investments have set those instead of high joblessness or in rural locations where half- million-dollar financial investments are enabled, which makes good sense.