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The program is placed in a very odd and non-helpful bureaucratic place for the excitement of international financial investment in the United States. Second, its scale is all incorrect. We are distributing excessive for also tiny of an investment. Additionally, increasing equity capital fifty percent a million bucks a tranche is, to say the least, ineffective.


The local centers, with their half-million schemes, basically damaged the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, ought to have to do with creating business entities, not easy investments. It ought to be about creating genuine tasks, not specify estimations concerning the indirect creation of tasks, which is now part of the regulation.


Maybe that is just one of the reasons it has actually fallen short year after year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with middlemen, both public and private. The program has greater than its share of rumors, which I will enter into later if anyone is interested.


This is a firm that likes to state yes to applicants, yet as the table in my statement shows, USCIS officers have much a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually really discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and for excellent reason

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Seventh, in this program visas go to people that might not get them otherwise and to people whose scheduled investment is really much less, according to the Federal Book, than the average mean total assets of all American households in 2007. Let me increase on one of my monitorings.


My price quote based on the financiers' permit applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not provide the sort of data that we can use on this.


So for each $100 of boosted international investment that year, the EB program added one cent. Under a far more unsteady analytical base, the first applications of potential immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I expect your comments and concerns. [The prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method team.




Divine acted as Principal Advise of the United States Citizenship and Migration website Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice president of the Association to Spend in United States, the national market association of regional.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 ports were used, it would be 1 percent of the immigration annually to the United States. It is not near that yet, but it is expanding and getting towards that. Particularly as USCIS, the company that manages the program, has been making the rules clearer and the procedures much more sensible and clear for individuals that are organizing financial investments and for the investors who are investing, more individuals have agreed and able to place effort and money right into the process to locate good jobs and establish them, and afterwards much more investors have actually been willing to invest their money and take the threat and use the cash to produce the work that is the factor of the program.

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These jobs do not wait around forever, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, in reality, they prepare to deny applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations costs that was passed 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 currently and not nearer to the date of expiration in September.


The process takes an excellent while to function up a task and then to get the capitalists authorized. And they do not desire their money flowing through until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of projects.

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I wish 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 feature of the routine EB-5 regulation that belongs to the code. It simply is a truth that a lot of the regional facilities that are pooling financial investments have set those in areas of high joblessness or in rural locations where fifty percent- million-dollar financial investments are permitted, and that makes good sense.