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Initially, the program is positioned in a very strange and non-helpful governmental location for the stimulation of worldwide investment in the USA. Second, its scale is all wrong. We are distributing as well much for also tiny of an investment. Even more, increasing equity capital half a million dollars a tranche is, to say the least, inefficient.


The regional facilities, with their half-million schemes, basically damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to have to do with creating service entities, not passive financial investments. It should be concerning creating actual jobs, not specify calculations concerning the indirect creation of work, which is now component of the regulation.


Maybe that is one of the reasons it has actually stopped working year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of intermediaries, both public and personal. The program has greater than its share of detractions, which I will get involved in later on if anyone is interested.


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

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Seventh, in this program visas go to people who could not get them any other means and to individuals whose scheduled investment is actually less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Allow me increase on among my monitorings.


My quote based on the investors' eco-friendly card applications filed 2 years after the first investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not offer the kind of information that we can make use of on this.


For every $100 of raised international investment that year, the EB program added one cent. Under a much more shaky analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thank you for listening to me. I anticipate your remarks and questions. [The prepared statement of David North shows up as an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine functioned as Chief Counsel of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has worked thoroughly with the EB-5 program in exclusive method. He was chosen, as I understand, vice president of the Organization to Spend in USA, the nationwide industry organization of local.


Divine, we are pleased to have you below. Please go on, sir. 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. Thank you for having me.


At the majority of, if all 10,000 slots were utilized, it would be 1 percent of the migration annually to the United States. It is not near that yet, yet it is growing and obtaining toward that. Particularly as USCIS, the firm that manages the program, has been making the regulations clearer and the procedures extra logical and clear for the individuals who are arranging investments and for the capitalists who are investing, even more individuals have actually been prepared and able to put effort and cash right into the procedure to discover excellent projects and create them, and afterwards extra financiers have actually wanted to spend their money and take the danger and make use of the money to produce the work that is the point of the program.

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These jobs do not wait about permanently, and USCIS recognizes that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since that click here program has been expanded five times for 19 years. It is time for it to be irreversible, 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 afterwards to get the investors authorized. And they do not want their cash streaming via up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of projects.

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I would love to make clear that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 legislation that becomes part of the code. It just is a truth that many of the regional centers that are pooling financial investments have actually set those instead of high unemployment or in rural areas where fifty percent- million-dollar financial investments are permitted, which makes good sense.