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The program is positioned in a very odd and non-helpful administrative place for the stimulation of global investment in the United States. Second, its scale is all wrong. We are offering away excessive for also small of an investment. Additionally, raising endeavor capital fifty percent a million bucks a tranche is, to say the least, inefficient.


The regional facilities, with their half-million plans, essentially undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with developing service entities, not passive financial investments. It ought to have to do with creating actual jobs, not clarify computations regarding the indirect production of work, which is now part of the regulations.


Probably that is among the reasons it has stopped working time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of intermediaries, both public and personal. The program has greater than its share of rumors, which I will certainly get into later if anyone is interested.


This is a firm that enjoys to say yes to applicants, however as the table in my testament reveals, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that nobody has actually really chatted around a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals that might not get them otherwise and to individuals whose organized investment is actually less, according to the Federal Book, than the average mean total assets of all American families in 2007. Let me expand on among my monitorings.


My price quote based upon the investors' permit applications filed 2 years after the initial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not provide the sort of information that we might utilize on this.


So for every single $100 of enhanced international investment that year, the EB program contributed one dime. Under a much more unsteady analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the level of financial investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thank you for listening to me. I eagerly anticipate your comments and concerns. [The prepared declaration of David North looks like a submission for the record.] 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 company's migration method team.




Divine offered as Chief Advice of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Deputy Director. He has actually functioned extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice head of state official source of the Association to Purchase United States, the national market organization of regional facilities.


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


At the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, yet it is growing and getting towards that. Specifically as USCIS, the company that manages the program, has actually been making the guidelines more clear and the processes a lot more sensible and clear for the individuals who are organizing investments and for the financiers that are spending, more people have agreed and able to place effort and money into the procedure to locate great jobs and create them, and check my site afterwards much more financiers have actually been eager to spend their money and take the danger and utilize the cash to create the jobs that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, in fact, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The local center part of the program is not. It belongs to an appropriations costs that was enacted in 1992, and considering 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 expiration more info here in September.


The procedure takes an excellent while to develop a project and after that to obtain the investors approved. And they do not want their money flowing through up until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the advancement of tasks.

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I want to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 regulation that is component of the code. It just is a reality that many of the local centers that are merging financial investments have set those instead of high unemployment or in country locations where half- million-dollar investments are allowed, and that makes good sense.