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Initially, the program is positioned in an extremely strange and non-helpful bureaucratic location for the excitement of global financial investment in the United States. Second, its range is all incorrect. We are distributing way too much for as well little of an investment. Further, increasing equity capital fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional facilities, with their half-million systems, essentially undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to be concerning developing organization entities, not easy financial investments. It should have to do with creating real jobs, not clarify computations regarding the indirect production of jobs, which is now component of the regulations.


Maybe that is among the reasons that it has stopped working time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also loaded with intermediaries, both public and personal. The program has more than its share of scandals, which I will enter into later on if any person is interested.


This is a firm that likes to say yes to applicants, but as the table in my testimony reveals, USCIS police officers have a lot extra problem with EB-5 applications than others. I assume that is something that no one has really talked around much. EB5 Regional Center Program. There are high rates of inner denials in this program and completely factor

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Seventh, in this program visas go to individuals who can not get them any other method and to people whose scheduled investment is actually less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me increase on among my monitorings.


My quote based upon the investors' environment-friendly card applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not give the kind of information that we might make use of on this.


So for every single $100 of enhanced foreign financial investment that year, the EB program added one cent. Under a far more wobbly statistical base, the first applications of potential immigrant investors, USCIS is informing journalists that the degree of financial investment in the just-concluded year was about $1.2 billion. Allow us accept check here that.

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Thanks for paying attention to me. I look ahead to your remarks and concerns. [The ready declaration of David North shows up as an entry for the document.] Chairman Leahy. Thanks. 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 migration technique team.




Divine worked as Chief Advice of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state of the Association to Spend in United States, the national industry association of regional.


Divine, we are pleased to have you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were made use of, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is growing and getting toward that. Particularly as USCIS, the agency that manages the program, has been making the policies clearer and the procedures extra reasonable and clear for the individuals that are organizing financial investments and for the investors that are spending, even more people have been ready and able to place effort and money right into the procedure to find excellent jobs and establish them, and after that a lot more financiers have been willing to spend their cash and take the threat and make use of the money to produce the jobs that is the point of the program.

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These jobs do not wait around forever, and USCIS recognizes 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, actually, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional center part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and given that then that program has been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to function up a job and afterwards to obtain the capitalists accepted. And they do not desire their cash flowing through till they have been approved. And the specter of the expiry of this Regional Center Program in September is currently preventing the advancement of projects.

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I would certainly like to clarify that the Regional Facility Program is not the same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 regulation that belongs to the code. It simply is a truth that the majority of the local centers that are pooling financial investments have actually set those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, which makes feeling.