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The program is positioned in a really odd and non-helpful governmental place for the excitement of international financial investment in the United States. Second, its scale is all incorrect. We are distributing excessive for as well small of a financial investment. Even more, increasing equity capital fifty percent a million bucks a tranche is, to claim the least, ineffective.


The local centers, with their half-million schemes, essentially damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to have to do with creating service entities, not passive investments. It ought to have to do with developing actual work, not elaborate estimations regarding the indirect development of tasks, which is currently component of the regulations.


Perhaps that is one of the reasons why it has actually stopped working year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of middlemen, both public and exclusive. The program has greater than its share of detractions, which I will enter into later on if anybody is interested.


This is a firm that enjoys to state yes to applicants, but as the table in my testimony shows, USCIS officers have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has really discussed a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely factor

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Seventh, in this program visas go to individuals who can not get them any kind of other method and to people whose organized investment is in fact less, according to the Federal Book, than the average mean web well worth of all American households in 2007. Allow me expand on one of my monitorings.


My estimate based on the investors' permit applications submitted 2 years after the very first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not offer the type of information that we could utilize on this.


So for every $100 of boosted international investment that year, the EB program contributed one cent. Under a far more shaky statistical base, the preliminary applications of potential immigrant capitalists, USCIS is telling journalists that the level of financial investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your comments and concerns. [The prepared declaration of David North appears as a submission for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is visit this site an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method team.




Divine acted as Principal Advice of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Director. He has actually worked thoroughly with the EB-5 program secretive technique. He was elected, as I comprehend, vice head of state of the Association to Invest in United States, the nationwide industry organization of regional.


Divine, we are pleased to have you right here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE United States (IIUSA) Mr. Divine. try here Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, however it is growing and getting toward that. Particularly as USCIS, the firm that looks after the program, has actually been making the policies clearer and the procedures much more logical and clear for the people who are organizing investments and for the investors who are spending, even more people have wanted and able to put effort and cash right into the procedure to discover great tasks and create them, and afterwards a lot more investors have wanted to spend their cash and take the risk and make use of the cash to create the jobs that is the factor of the program.

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These jobs do not wait about forever, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Find Out More Program. That does not mean that they are relaxing their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The regional center part of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever since that program has actually been prolonged 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 work up a job and after that to get the capitalists authorized. And they do not want their money streaming via until they have been authorized. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the growth of jobs.

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I want to make clear that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 law that belongs to the code. It just is a fact that a lot of the regional centers that are merging financial investments have actually established those instead of high joblessness or in country areas where fifty percent- million-dollar investments are allowed, and that makes good sense.