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Initially, the program is positioned in an extremely weird and non-helpful governmental area for the stimulation of global financial investment in the USA. Second, its range is all incorrect. We are distributing excessive for as well little of a financial investment. Additionally, raising financial backing half a million bucks a tranche is, to say the least, inefficient.


The local facilities, with their half-million schemes, basically damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to have to do with producing organization entities, not passive financial investments. It must be regarding creating real jobs, not specify estimations concerning the indirect production of jobs, which is currently part of the regulation.


Perhaps that is one of the reasons that it has stopped working year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also loaded with intermediaries, both public and exclusive. The program has even more than its share of rumors, which I will certainly get involved in later on if anyone is interested.


This is a firm that enjoys to claim yes to applicants, yet as the table in my testament shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually really spoken about much. 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 could not get them any kind of various other method and to people whose planned financial investment is actually much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Let me increase on one of my observations.


My quote based on the financiers' eco-friendly card 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 price quote. USCIS does not supply the type of data that we could make use of on this.


So for each $100 of raised foreign financial investment that year, the EB program contributed one cent. Under a much more wobbly statistical base, the first applications of would-be immigrant capitalists, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I eagerly anticipate your comments and inquiries. [The prepared declaration of David North shows up as an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the Extra resources company's immigration practice team.




Divine acted as Principal Counsel of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and then Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I understand, vice president of the Association to Invest in United States, the nationwide sector organization of local facilities.


Divine, we are thrilled to have you right here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Specifically as USCIS, the company that looks after the program, has actually been making the policies clearer and the processes more reasonable and clear for the people who are organizing investments and for the investors who are spending, even more individuals have agreed and able to put initiative and cash right into the process to locate excellent tasks and establish them, and afterwards web extra financiers have wanted to spend their money and take the threat and use the cash to produce the jobs that is the point of the program.

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These projects do not linger for life, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Look At This Center Program. That does not indicate that they are unwinding their examination, and, in truth, they are prepared to deny applications that are not qualifying. And they do so, as was discussed


The regional facility component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes a good while to develop a job and after that to get the financiers accepted. And they do not want their money streaming through until they have actually been accepted. 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 certainly like to make clear that the Regional Center 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 routine EB-5 law that belongs to the code. It just is a fact that a lot of the local facilities that are merging financial investments have established those instead of high joblessness or in country locations where half- million-dollar investments are allowed, and that makes sense.