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Initially, the program is positioned in an extremely weird and non-helpful administrative place for the stimulation of worldwide investment in the United States. Second, its scale is all incorrect. We are providing away excessive for also little of an investment. Further, elevating equity capital half a million dollars a tranche is, to state the least, ineffective.


The local facilities, with their half-million schemes, basically undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to have to do with creating service entities, not easy investments. It must have to do with creating genuine work, not clarify computations about the indirect creation of jobs, which is now component of the regulation.


Perhaps that is one of the reasons it has actually failed time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with middlemen, both public and personal. The program has even more than its share of scandals, which I will enter later if anyone is interested.


This is a firm that enjoys to claim yes to applicants, however as the table in my testament shows, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently reason

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Seventh, in this program visas most likely to people that can not get them any various other method and to individuals whose organized investment is actually much less, according to the Federal Reserve, than the typical mean total assets of all American families in 2007. Allow me expand on one of my monitorings.


My quote based upon the investors' eco-friendly card applications filed 2 years after the first investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not give the sort of information that we can make use of on this.


For every $100 of boosted international investment that year, the EB program contributed one dime. Under a far more unsteady statistical base, the initial applications of potential immigrant capitalists, USCIS is telling reporters that the degree 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 paying attention to me. I expect your comments and inquiries. [The prepared declaration of David North appears as a submission for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is a knockout post the head of the company's migration method group.




Divine acted as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Acting Deputy Director. He has worked extensively with the EB-5 program in exclusive method. He was chosen, as I recognize, vice president of the Organization to Purchase U.S.A., the national market organization of regional facilities.


Divine, we are happy to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the agency that oversees the program, has actually been making the regulations clearer and the processes more logical and clear for individuals who are organizing financial investments and for the financiers that are spending, even more people have been ready and able to place initiative and cash right into the process to locate excellent tasks and create them, and afterwards much more financiers have actually wanted to invest their cash and take the threat and use the cash to create the tasks that is the point of the program.

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These projects do not wait around for life, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, in fact, they are ready to refute applications that are not qualifying. And they do so, as was discussed


The regional center component of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the this contact form day of expiry in September.


The process takes a good while to develop a task and afterwards to get the investors approved. And they do not want their money flowing with up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of jobs.

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I would love to make clear that the Regional Facility Program discover this info here is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 legislation that belongs to the code. It simply is a reality that most of the local facilities that are merging investments have actually established those in locations of high unemployment or in backwoods where half- million-dollar financial investments are permitted, and that makes good sense.