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First, the program is placed in a very odd and non-helpful bureaucratic location for the excitement of international investment in the United States. Second, its scale is all incorrect. We are handing out way too much for too little of a financial investment. Further, raising financial backing half a million dollars a tranche is, to claim the least, inefficient.


The local facilities, with their half-million schemes, essentially damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must be concerning producing service entities, not easy financial investments. It needs to be regarding producing real work, not specify estimations regarding the indirect development of work, which is currently component of the regulation.


Perhaps that is just one of the factors why it has actually failed every year to reach the legislative goal 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 even more than its share of rumors, which I will enter into later if any person is interested.


This is an agency that loves to say yes to candidates, yet as the table in my testament reveals, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has truly talked about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and for excellent factor

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Seventh, in this program visas most likely to individuals who might not obtain them differently and to individuals whose scheduled investment is in fact less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Allow me broaden on among my observations.


My price quote based upon the financiers' copyright applications submitted 2 years after the first financial 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 price quote. USCIS does not provide the kind of information that we could utilize on this.


So for each $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a far more wobbly statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for listening to me. I look ahead to your comments and inquiries. [The prepared statement of David North appears as an entry for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique team.




Divine acted as Principal Advice of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has actually functioned extensively with the EB-5 program secretive technique. He was elected, as I understand, vice president of the Organization to Buy United States, the nationwide sector association of local facilities.


Divine, we are thrilled to have you right here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were utilized, it would be 1 percent of the immigration every year to the United States. It is not near that yet, but it is expanding and obtaining toward that. Particularly as USCIS, the company that manages the program, has actually been making the guidelines more clear and the processes extra sensible and clear you can find out more for individuals who are arranging financial investments and for the capitalists who are investing, more people have wanted and able to put effort and cash right into the process to discover good tasks and establish them, and after that a lot more financiers have actually wanted to spend their money and take the danger and use the cash to develop the work that is the factor of the program.

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These projects do not wait about permanently, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding web their examination, and, in fact, they are prepared to deny applications that are not certifying. And they do so, as was discussed


The regional center part of the program is not. It belongs to an appropriations expense that was straight from the source enacted in 1992, and ever since that program has been extended five 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 an excellent while to develop a job and after that to get the investors authorized. And they do not want their money streaming through until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth of tasks.

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I wish to clarify that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 legislation that becomes part of the code. It simply is a truth that the majority of the local centers that are merging financial investments have established those in areas of high unemployment or in country areas where half- million-dollar investments are permitted, which makes sense.