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First, the program is placed in an extremely strange and non-helpful administrative location for the stimulation of worldwide financial investment in the United States. Second, its range is all incorrect. We are handing out too much for as well tiny of a financial investment. Further, increasing endeavor capital half a million dollars a tranche is, to state the least, inefficient.


The local centers, with their half-million systems, basically undercut the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, must have to do with creating organization entities, not easy financial investments. It should have to do with developing genuine jobs, not elaborate estimations about the indirect development of jobs, which is currently part of the legislation.


Maybe that is among the reasons why it has stopped working every year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too loaded with intermediaries, both public and exclusive. The program has more than its share of rumors, which I will certainly get right into later on if anybody is interested.


This is a firm that likes to claim yes to candidates, but as the table in my testament reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I assume that is something that nobody has actually actually discussed a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and for great factor

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Seventh, in this program visas most likely to people who might not obtain them otherwise and to individuals whose scheduled financial investment is really less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Let me increase on one of my monitorings.


My estimate based on the financiers' permit applications submitted 2 years after the initial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not offer the type of information that we might utilize on this.


For every $100 of increased international financial investment that year, the EB program added one dime. Under a a lot more wobbly analytical base, the first applications of would-be immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for listening to me. I anticipate your remarks and concerns. [The prepared statement of David North looks like an entry for the resource 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 company's immigration method team.




Divine acted as Chief Guidance of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. He has actually worked extensively with the EB-5 program secretive technique. He was chosen, as I comprehend, vice president of the Organization to Spend in U.S.A., the nationwide market association of regional.


Divine, we are happy to have you below. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were made use of, it would be 1 percent of the migration every year to the United States. It is not near that yet, but it is growing and this link obtaining toward that. Particularly as USCIS, the agency that supervises the program, has been making the rules more clear and the processes extra reasonable and clear for individuals that are arranging investments and for the capitalists who are investing, even more people have wanted and able to put effort and cash right into the process to locate excellent tasks and develop them, and afterwards more financiers have actually wanted to invest their money and take the threat and make use of the cash to produce the work that is the point of the program.

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These projects do not linger forever, and USCIS recognizes 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, actually, 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 check this been prolonged 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 day of expiry in September.


The procedure takes a good while to develop a task and after that to obtain the investors authorized. And they do not want their money moving through up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the growth of tasks.

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I want to clear up that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 law that belongs to the code. It just is a fact that a lot of the local facilities that are merging investments have established those instead of high unemployment or in country locations where fifty percent- million-dollar financial investments are permitted, which makes good sense.