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First, the program is positioned in an extremely strange and non-helpful governmental area for the stimulation of international investment in the USA. Second, its scale is all wrong. We are distributing as well much for too small of a financial investment. Additionally, elevating equity capital fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional centers, with their half-million systems, essentially damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must have to do with creating company entities, not passive financial investments. It ought to have to do with producing real jobs, not clarify computations about the indirect development of tasks, which is currently component of the legislation.


Maybe that is one of the reasons why it has actually stopped working year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of middlemen, both public and exclusive. The program has more than its share of detractions, which I will enter into later if any person is interested.


This is a firm that likes to say yes to applicants, but as the table in my testimony shows, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually truly spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and completely reason

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Seventh, in this program visas most likely to people who might not obtain them differently and to individuals whose organized financial investment is in fact less, according to the Federal Reserve, than the average mean net worth of all American families in 2007. Let me expand on one of my observations.


My estimate based upon the investors' environment-friendly card applications submitted 2 years after the very first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not provide the kind of data that we could make use of on this.


So for every single $100 of raised international financial investment that year, the EB program added one cent. Under a a lot more shaky statistical base, the preliminary applications of would-be immigrant financiers, USCIS is informing journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I expect your comments and inquiries. [The ready declaration of David North looks like a submission 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 immigration practice group.




Divine acted as Chief Guidance of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program in exclusive practice. He was elected, as I recognize, vice president of the Association to Purchase United States, the nationwide market organization of local facilities.


Divine, we are thrilled to have you right 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, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were used, it would be 1 percent of the migration annually to the United States. It is not near that yet, however it is expanding and getting towards that. Especially as USCIS, the agency that looks after the program, has been making the rules more clear and the procedures much more rational and clear for individuals that are organizing investments and for the capitalists who are investing, even more individuals have wanted and able to place effort and money into the process to discover great jobs and create find this them, and after that much more capitalists have actually wanted to invest their money and take the danger and use the money to develop the jobs that is the point of the program.

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These tasks do not wait around forever, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as our website was stated


The regional facility part of the program is not. It belongs to an appropriations costs that was established in 1992, and considering that then that program has been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes an excellent while to develop a task and then to obtain the capitalists accepted. And they do not desire their cash flowing through up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already inhibiting the development of why not check here projects.

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I would love to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a truth that a lot of the regional centers that are pooling investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes good sense.