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Initially, the program is placed in an extremely odd and non-helpful bureaucratic area for the excitement of global financial investment in the United States. Second, its range is all wrong. We are offering away way too much for as well tiny of an investment. Additionally, increasing equity capital fifty percent a million bucks a tranche is, to claim the least, ineffective.

The local facilities, with their half-million plans, essentially damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with developing service entities, not passive investments. It ought to be about creating actual tasks, not clarify estimations regarding the indirect creation of tasks, which is now part of the regulation.


Maybe that is one of the factors why it has stopped working year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter into later on if anybody is interested.


This is a firm that likes to claim yes to applicants, yet as the table in my testament shows, USCIS police officers have much extra trouble with EB-5 applications than others. I assume that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and completely factor

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


My estimate based upon the capitalists' permit applications filed 2 years after the very first financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not give the sort of information that we might utilize on this.


So for each $100 of boosted foreign investment that year, the EB program contributed one penny. Under a a lot more wobbly statistical base, the more info preliminary applications of potential immigrant investors, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. I anticipate your remarks and inquiries. [The prepared declaration of David North looks like an entry 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 company's immigration method team.

Divine worked as Chief Guidance of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Supervisor. He has functioned thoroughly with the EB-5 program in exclusive method. He was elected, as I comprehend, vice head of state of the Organization to Spend in United States, the national industry organization of regional facilities.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Specifically as USCIS, the firm that oversees the program, has actually been making the policies more clear and the procedures extra sensible and clear for the people that are organizing financial investments and for the investors who are spending, more people have wanted and able to place effort and cash right into the process to locate excellent jobs and develop them, and afterwards a lot more investors have been prepared to spend their money and take the risk and use the money to develop the jobs that is the point of the program.

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These projects do not wait about forever, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, in reality, they prepare to deny applications that are not qualifying. And they do so, as was mentioned

The regional facility part 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 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 expiry in September.


The process takes a great while to work up a task and then to obtain the investors authorized. And they do not want their money flowing through till they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already dissuading the advancement of tasks.

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I would such as to clarify that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It just is a truth that most of the regional centers that are pooling financial investments have actually established those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes feeling.