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The program is placed in a very weird and non-helpful administrative area for the stimulation of worldwide financial investment in the United States. Second, its range is all incorrect. We are handing out as well much for as well tiny of a financial investment. Better, raising financial backing half a million dollars a tranche is, to state the least, ineffective.


The local facilities, with their half-million systems, basically undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must have to do with producing company entities, not passive financial investments. It should be regarding developing real work, not clarify calculations regarding the indirect production of tasks, which is now part of the regulation.


Possibly that is one of the reasons why it has actually fallen short every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter into later if anyone is interested.


This is a firm that likes to claim yes to applicants, however as the table in my testimony reveals, USCIS officers have much extra problem with EB-5 applications than others. I believe that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for good factor

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Seventh, in this program visas go to people who can not obtain them differently and to people whose planned investment is actually less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Let me expand on one of my monitorings.


My price quote based upon the capitalists' permit applications submitted 2 years after the first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not offer the kind of data 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 more wobbly statistical base, the initial applications of prospective immigrant capitalists, USCIS is informing journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and inquiries. [The prepared declaration of David North shows up as a submission for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique group.




Divine served as Chief Guidance of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive technique. He was chosen, as I comprehend, vice president of the Association to Invest in United States, the national industry organization of local.


Divine, we are delighted to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the agency that looks after the program, has actually been making the policies more clear and the processes extra sensible and clear for individuals who are arranging investments and for the capitalists who are investing, even more individuals have wanted and able to put effort and cash right into the procedure to find great jobs and develop them, and afterwards extra investors have been ready to invest their money and take the danger 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 wait about for life, and USCIS recognizes that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, in fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The regional facility part of the program is not. It becomes part of an appropriations bill 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 permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to work up a task and after that to obtain the capitalists accepted. And they do not want their money streaming via until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the growth of projects.

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I want to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 regulation that belongs to the code. It just is a fact that the read more majority of the local centers that are pooling financial investments have set those instead of high joblessness or in country locations where fifty percent- million-dollar financial investments are enabled, and that makes feeling.