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The program is put in a really strange and non-helpful governmental location for the excitement of global financial investment in the United States. Second, its range is all wrong. We are handing out excessive for too little of an investment. Even more, increasing venture capital fifty percent a million dollars a tranche is, to say the least, inefficient.


The regional facilities, with their half-million plans, basically damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to be concerning creating organization entities, not passive investments. It ought to have to do with developing genuine jobs, not elaborate computations concerning the indirect production of work, which is currently part of the regulations.


Possibly that is one of the reasons that it has fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too full of intermediaries, both public and private. The program has greater than its share of scandals, which I will enter later on if any person is interested.


This is an agency that likes to state yes to applicants, but as the table in my testament shows, USCIS policemans have far more difficulty 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 prices of inner rejections in this program and forever reason

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Seventh, in this program visas go to people that can not obtain them otherwise and to people whose planned investment is in fact less, according to the Federal Get, than the average mean internet well worth of all American family members in 2007. Allow me increase on among my observations.


My price quote based on the capitalists' eco-friendly card applications filed 2 years after the initial financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not supply the kind of data that we can utilize on this.


For every $100 of increased foreign financial investment that year, the EB program added one penny. Under a a lot more wobbly statistical base, the initial applications of prospective immigrant investors, USCIS is telling journalists 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 paying attention to me. I look ahead to your remarks and inquiries. [The prepared declaration of David North appears as an entry for the record.] Chairman Leahy. Thank you. 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 team.




Divine acted as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Director. He has worked extensively with the EB-5 program in personal method. He was chosen, as I recognize, vice president of the Organization to Invest in U.S.A., the national sector organization of regional.


STATEMENT 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 a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is growing and obtaining towards that. Especially as USCIS, the agency that manages the program, has actually been making the rules more clear and the processes much more sensible and clear for the individuals who are arranging financial investments and for the financiers who are spending, even more people have been ready and able to place initiative and cash into the procedure to locate excellent tasks and develop them, and after that more investors have actually wanted to spend their cash and take the risk and utilize the money to produce the tasks that is the point of the program.

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These jobs do not wait about for life, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, in truth, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It belongs to an appropriations costs that was enacted in 1992, and given that then that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes an excellent while to work up a project and then to obtain the capitalists authorized. And they do not desire their cash moving with until they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently preventing the development of projects.

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I want to clear up that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 regulation that becomes part of the code. It simply is EB5 Regional Center Program a fact that the majority of the regional facilities that are merging investments have actually established those in locations of high joblessness or in country locations where fifty percent- million-dollar financial investments are enabled, which makes good sense.