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The program is put in a really odd and non-helpful bureaucratic location for the excitement of worldwide investment in the United States. Second, its range is all wrong. We are providing away also much for too small of a financial investment. Further, raising venture resources fifty percent a million bucks a tranche is, to say the least, inefficient.


The local facilities, with their half-million schemes, essentially damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, should be regarding producing organization entities, not easy financial investments. It should be about developing actual jobs, not specify computations concerning the indirect creation of tasks, which is currently part of the regulation.


Probably that is one of the reasons it has actually failed time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well full of intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will certainly get into later if any person is interested.


This is a company that loves to claim yes to applicants, but as the table in my statement reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has truly chatted around much. EB5 Regional Center Program. There are high rates of interior denials in this program and forever reason

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Seventh, in this program visas go to people who can not get them differently and to individuals whose scheduled financial investment is really less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Allow me expand on among my monitorings.


My quote based on the investors' permit applications submitted 2 years after the first investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not supply the type of information that we could make use of on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a far more wobbly analytical base, the first applications of would-be immigrant investors, USCIS is informing reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I eagerly anticipate your comments and questions. [The prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. 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 group.




Divine worked as Chief Advise of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Director. He has actually worked extensively with the EB-5 program secretive method. He was chosen, as I recognize, vice president of the Organization to Purchase USA, the national industry association of regional centers.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is growing and obtaining towards that. Specifically as USCIS, the agency that supervises the program, has actually read review been making the policies clearer and the procedures extra logical and clear for the individuals that are organizing financial investments and for the capitalists that are spending, even more people have wanted and able to place initiative and cash right into the procedure to locate great tasks and create them, and afterwards more investors have been prepared to invest their cash and take the risk and make use of the cash to develop the jobs that is the point of the program.

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These tasks do not wait about forever, and USCIS recognizes that this page and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, in fact, they are prepared to deny applications that are not qualifying. And they do so, as was mentioned


The regional facility part of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a good while to develop a job and afterwards to obtain the investors accepted. And they do not want their money flowing with till they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already preventing the growth of tasks.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 legislation that is part of the code. It just is a truth that a lot of the local centers that are find more information pooling financial investments have established those instead of high unemployment or in country areas where half- million-dollar investments are permitted, and that makes feeling.