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The program is put in a really odd and non-helpful governmental location for the excitement of international financial investment in the United States. Second, its range is all wrong. We are distributing way too much for too tiny of an investment. Better, raising equity capital half a million dollars a tranche is, to say the least, ineffective.


The regional centers, with their half-million schemes, essentially undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to be concerning developing organization entities, not passive financial investments. It must be regarding producing actual tasks, not elaborate calculations regarding the indirect creation of tasks, which is now component of the regulations.


Probably that is among the reasons that it has actually stopped working year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also filled up with intermediaries, both public and personal. The program has greater than its share of rumors, which I will enter into later if any person is interested.


This is an agency that likes to state yes to applicants, however as the table in my testimony reveals, USCIS officers have far more problem with EB-5 applications than others. I think that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas go to individuals that could not get them any type of other means and to people whose organized investment is really much less, according to the Federal Book, than the average mean net worth of all American families in 2007. Let me broaden on one of my observations.


My estimate based on the investors' eco-friendly card applications filed 2 years after the first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not give the type of information that we might utilize on this.


For every $100 of boosted international financial investment that year, the EB program added one cent. Under a much a lot more unsteady statistical base, the first applications of potential immigrant financiers, USCIS is informing journalists that the degree of investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I expect your remarks and questions. [The ready statement of David North shows up as an entry for the document.] Chairman Leahy. Thank you. 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 functioned as Chief Counsel of the USA Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Replacement Director. He has actually worked thoroughly with the EB-5 program secretive method. He was chosen, as I comprehend, vice president of the Organization to Invest in United States, the nationwide industry organization of regional.


Divine, we are pleased to have you right here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Particularly as USCIS, the company that supervises the program, has been making the regulations clearer and the procedures more sensible and clear for the people that are organizing investments and for the investors that are investing, even more people have actually been willing and able to put initiative and money right into the procedure to find great jobs and develop them, and after that extra investors have agreed to invest their cash and take the threat and use the money to produce the work that is the point of the program.

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These jobs do not wait about permanently, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, in fact, they are prepared to deny applications that are not qualifying. And they do so, as was stated


The local center part of the program is not. It is component of an appropriations bill that was established in 1992, and ever since that program has actually been prolonged 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 day of expiry in September.


The process takes an excellent while to develop a task and after that to obtain the capitalists authorized. And they do not desire their money flowing with until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already dissuading the growth of jobs.

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I would certainly such as to clarify 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 routine EB-5 legislation that becomes part of the code. It simply is a fact that EB5 Regional Center Program most of the regional facilities that are merging financial investments have established those in areas of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes good sense.