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First, the program is put in a really odd and non-helpful administrative place for the stimulation of international investment in the USA. Second, its scale is all wrong. We are offering away way too much for too tiny of a financial investment. Better, raising endeavor funding fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional facilities, with their half-million schemes, basically damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must have to do with producing organization entities, not easy investments. It must have to do with developing real jobs, not specify estimations regarding the indirect development of work, which is now component of the regulation.


Perhaps that is one of the reasons why it has failed year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will enter into later on if anybody is interested.


This is a company that likes to state yes to applicants, however as the table in my statement reveals, USCIS officers have far more problem with EB-5 applications than others. I believe that is something that no one has really spoken around a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals that could not obtain them any various other way and to individuals whose organized investment is actually much less, according to the Federal Reserve, than the average mean net worth of all American households in 2007. Allow me broaden on among my observations.


My price quote based upon the financiers' permit applications submitted 2 years after the initial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not provide the type of information that we could use on this.


So for every single $100 of raised international investment that year, the EB program contributed one penny. Under a much extra wobbly analytical base, the initial applications of potential immigrant investors, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I look forward to your remarks and questions. [The ready statement of David North appears as a submission for the document.] 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 firm's migration method team.




Divine worked as Principal Guidance of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program in exclusive technique. He was chosen, as I recognize, vice head of state of the Organization to Purchase United States, the national industry organization of regional centers.


Divine, we are thrilled to have you below. 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, BUY THE United States (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 migration annually to the United States. EB5 Regional Center Program It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the company that manages the program, has actually been making the guidelines clearer and the procedures extra logical and clear for individuals that are arranging financial investments and for the investors that are investing, more individuals have wanted and able to put effort and money right into the process to find great jobs and develop them, and after that a lot more investors have actually agreed to invest their cash and take the risk and make use of the cash to produce the work that is the factor of the program.

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These projects do not wait about permanently, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, actually, they prepare to deny applications that are not certifying. And they do so, as was stated


The regional center part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes a great while to function up a project and after that to get the financiers accepted. And they do not desire their money streaming via up until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is currently discouraging the growth of projects.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 law that belongs to the code. It simply is a reality that the majority of the local facilities that are pooling investments have set those instead of high unemployment or in rural locations where half- million-dollar investments are allowed, which makes good sense.