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Initially, the program is placed in a very odd and non-helpful bureaucratic area for the excitement of global investment in the USA. Second, its scale is all wrong. We are providing away way too much for also small of a financial investment. Further, increasing equity capital fifty percent a million bucks a tranche is, to state the least, ineffective.


The local facilities, with their half-million systems, basically undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should be regarding developing company entities, not easy financial investments. It should have to do with creating genuine tasks, not specify calculations about the indirect creation of work, which is now component of the legislation.


Maybe that is one of the reasons why it has actually fallen short year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of intermediaries, both public and exclusive. The program has more than its share of scandals, which I will certainly get involved in later if anybody is interested.


This is a company that likes to state yes to applicants, yet as the table in my testament shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently factor

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Seventh, in this program visas most likely to people that might not get them any other way and to individuals whose organized investment is actually much less, according to the Federal Reserve, than the ordinary mean web well worth of all American family members in 2007. Let me increase on one of my monitorings.


My price quote based on the financiers' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not give the kind of data that we could utilize on this.


So for every $100 of raised international investment that year, the EB program contributed one dime. Under a a lot more wobbly statistical base, the first applications of prospective immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thanks for listening to me. I eagerly anticipate your comments and concerns. [The ready statement of David North looks like a submission for the record.] Chairman Leahy. Thanks. Our following 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 worked as Chief Guidance of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Supervisor. He has worked extensively with the EB-5 program in personal technique. He was chosen, as I recognize, vice president of the Organization to Invest in U.S.A., the national industry organization of regional.


DECLARATION 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, visit homepage Legislator Grassley, and others.


At most, if all 10,000 ports were utilized, it would be 1 percent of the migration annually to the United States. It is not near that yet, yet it is growing and obtaining towards that. Particularly as USCIS, the company that manages the program, has been making the guidelines more clear and the procedures extra sensible and clear for individuals who are organizing investments and for the investors that are spending, more individuals have actually agreed and able to put effort and cash into the procedure to find excellent projects and develop them, and afterwards much more investors have been eager to spend his comment is here their cash and take the danger and utilize the cash to produce the jobs that is the factor of the program.

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These jobs do not wait around forever, and USCIS recognizes that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, actually, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The local facility component of the program is not. It is component of an appropriations expense that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes a great while to work up a project and afterwards to get visit this page the capitalists approved. And they do not desire their money moving with until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already inhibiting the growth of jobs.

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I would love to clear up that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 law that belongs to the code. It simply is a reality that the majority of the regional centers that are merging investments have actually set those instead of high unemployment or in backwoods where half- million-dollar financial investments are allowed, which makes sense.