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First, the program is placed in an extremely odd and non-helpful bureaucratic area for the stimulation of worldwide investment in the USA. Second, its scale is all wrong. We are giving away also much for as well small of a financial investment. Further, elevating equity capital fifty percent a million dollars a tranche is, to state the least, inefficient.


The regional centers, with their half-million schemes, basically damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should have to do with producing organization entities, not easy financial investments. It needs to be regarding developing actual jobs, not specify estimations concerning the indirect development of work, which is currently component of the legislation.


Possibly that is one of the reasons why it has fallen short year after year to get to the legislative goal of 10,000 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 more than its share of rumors, which I will get right into later if anyone is interested.


This is a company that loves to claim yes to applicants, yet as the table in my testament reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that no one has actually truly talked about a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and forever factor

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Seventh, in this program visas go to individuals who can not obtain them differently and to individuals whose planned financial investment is really much less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Let me increase on one of my monitorings.


My estimate based upon the capitalists' environment-friendly card applications filed 2 years after the very first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not offer the type of information that we can make use of on this.


For every $100 of boosted international financial investment that year, the EB program added one cent. Under a far more shaky statistical base, the initial applications of would-be immigrant financiers, USCIS is telling journalists that the level of financial investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I look onward to your remarks and concerns. [The ready statement of David North appears as an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method team.




Divine functioned as Principal Advice of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has actually worked extensively with the EB-5 program in private practice. He was elected, as I recognize, vice president of the Association to Spend in U.S.A., the national market association of local facilities.


Divine, we are happy to have you below. 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, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, 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 growing and getting towards that. Especially as USCIS, the agency that supervises the program, has actually been making the regulations more clear and the processes much more logical and clear for individuals who are organizing financial investments and for the investors who are spending, more individuals have actually agreed and able to put effort and cash into the process to locate good tasks and create them, and after that extra financiers have actually been willing to invest their money and take the risk and use the cash to create the jobs that is the factor of the program.

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These jobs do not wait about forever, and USCIS recognizes that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, as a matter of fact, they are all set to refute applications that are not qualifying. And they do so, as was pointed out


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


The process takes a great while to develop check here a job and then to obtain the capitalists approved. And they do not desire their cash streaming via up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the development of jobs.

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I wish to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 legislation that becomes part of the code. It simply is a reality that a lot of the regional facilities that are pooling investments have set those in places of high unemployment or in backwoods where half- million-dollar investments are enabled, which makes sense.