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First, the program is positioned in an extremely weird and non-helpful governmental location for the stimulation of worldwide financial investment in the United States. Second, its range is all incorrect. We are giving away also much for also little of an investment. Further, elevating equity capital fifty percent a million bucks a tranche is, to state the least, inefficient.


The local facilities, with their half-million schemes, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must have to do with developing organization entities, not easy investments. It must have to do with creating actual jobs, not clarify calculations regarding the indirect creation of tasks, which is currently component of the regulations.


Maybe that is just one of the reasons it has stopped working every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too filled with intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will certainly enter into later on if anyone is interested.


This is an agency that likes to say yes to applicants, but as the table in my testimony reveals, USCIS police officers have far more problem with EB-5 applications than others. I assume that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and forever factor

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Seventh, in this program visas most likely to individuals who could not get them otherwise and to individuals whose organized financial investment is really less, according to the Federal Reserve, than the average mean net worth of all American family members in 2007. Let me broaden on among my observations.


My price quote based on the investors' permit applications submitted 2 years after the initial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not provide the sort of data that we might use on this.


For every $100 of boosted international financial investment that year, the EB program added one dime. Under a much more unsteady statistical base, the first applications of prospective immigrant financiers, USCIS is telling journalists that the level of financial investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and questions. [The prepared statement of David North appears 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 company's immigration technique team.




Divine worked as Principal Advice of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has actually functioned extensively with the EB-5 program in personal practice. He was chosen, as I understand, vice president of the Organization to Spend in United States, the national industry association of regional.


Divine, we are happy to have you below. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the recommended you read immigration yearly to weblink the USA. It is not near that yet, yet it is expanding and getting toward that. Especially as USCIS, the firm that supervises the program, has been making the regulations more clear and the processes extra rational and clear for the people who are organizing investments and for the capitalists that are investing, more people have wanted and able to place initiative and cash right into the process to find good tasks and develop them, and after that more investors have actually been eager to spend their cash and take the risk and make use of the cash to produce the work that is the factor of the program.

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These tasks do not linger forever, and USCIS recognizes that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they are ready to deny applications that are not certifying. And they do so, as was pointed out


The regional center part of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The process takes an excellent while to develop a project and then to obtain the capitalists accepted. And they do not desire their cash flowing through until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the development of projects.

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I want to clarify that the Regional Facility Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It simply is a fact that a lot why not look here of the regional facilities that are pooling investments have actually set those in locations of high unemployment or in country areas where fifty percent- million-dollar financial investments are enabled, which makes good sense.