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The program is placed in a very weird and non-helpful governmental area for the stimulation of worldwide financial investment in the United States. Second, its range is all incorrect. We are distributing too much for also little of a financial investment. Further, elevating equity capital half a million bucks a tranche is, to claim the least, ineffective.


The local facilities, with their half-million schemes, basically undercut the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must be regarding developing business entities, not easy financial investments. It should have to do with producing real work, not clarify estimations concerning the indirect production of work, which is currently part of the regulation.


Probably that is one of the reasons it has failed every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of intermediaries, both public and personal. The program has greater than its share of scandals, which I will get into later if anyone is interested.


This is a company that likes to say yes to applicants, but as the table in my testimony shows, USCIS policemans have a lot more problem with EB-5 applications than others. I believe that is something that nobody has truly chatted about a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and forever reason

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Seventh, in this program visas most likely to people who can not get them any various other method and to people whose planned financial investment is actually less, according to the Federal Reserve, than the typical mean net worth of all American households in 2007. Let me expand on among my monitorings.


My price quote based upon the financiers' copyright applications submitted 2 years after the first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the sort of information that we might use on this.


For every $100 of increased international financial investment that year, the EB program contributed one cent. Under a much more wobbly statistical base, the preliminary applications of would-be immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I look ahead to your comments and inquiries. [The prepared declaration of David North appears 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 method group.




Divine functioned as Principal Advise of the USA Citizenship and Immigration Providers important site from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Director. He has worked extensively with the EB-5 program secretive method. He was elected, as I comprehend, vice president of the Association to Invest in U.S.A., the nationwide market organization of local.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and here are the findings others.


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Particularly as USCIS, the agency that looks after the program, has been making the rules more clear and the procedures a lot more sensible and clear for individuals who are organizing financial investments and for the financiers that are spending, more individuals have wanted and able to put effort and cash right into the process to locate good jobs and establish them, and after that a lot more capitalists have actually wanted to spend their cash and take the risk and use the cash to create the tasks that is the point of the program.

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These jobs do not linger forever, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It is part of an appropriations expense that was enacted in 1992, and ever click over here since that program has been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes an excellent while to develop a task and after that to obtain the financiers approved. And they do not want their cash moving through up until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is currently discouraging the advancement of jobs.

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I want to clear up that the Regional Center 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 just is a reality that a lot of the regional centers that are pooling investments have established those in places of high joblessness or in rural areas where half- million-dollar investments are permitted, which makes feeling.