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The program is put in a very weird and non-helpful governmental place for the stimulation of international financial investment in the United States. Second, its range is all incorrect. We are distributing excessive for also tiny of a financial investment. Better, elevating equity capital fifty percent a million dollars a tranche is, to claim the least, inefficient.


The regional centers, with their half-million schemes, basically damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to be regarding producing organization entities, not easy financial investments. It needs to be concerning developing genuine tasks, not clarify computations concerning the indirect production of tasks, which is now component of the regulations.


Maybe that is just one of the reasons that it has failed year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well filled up with middlemen, both public and private. The program has greater than its share of scandals, which I will certainly enter later if anybody is interested.


This is an agency that enjoys to claim yes to candidates, however as the table in my statement reveals, USCIS police officers have a lot more problem with EB-5 applications than others. I believe that is something that no one has really discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals that could not get them differently and to individuals whose organized investment is in fact much less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Allow me expand on one of my monitorings.


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


So for each $100 of raised foreign investment that year, the EB program added one dime. Under a a lot more wobbly statistical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I anticipate your remarks and questions. [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 migration method group.




Divine served as Chief Advise of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and then Acting Replacement Supervisor. He has actually worked thoroughly with the EB-5 program in exclusive practice. He was chosen, as I comprehend, vice head of state of the Organization site to Spend in USA, the national market association of local.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, yet it is growing and getting towards that. Specifically as USCIS, the company that looks after the program, has actually been making the regulations more clear and the procedures extra reasonable and clear for the people who are organizing financial investments and for the investors who news are investing, even more individuals have agreed and able to place effort and money right into the process to find good jobs and establish them, and afterwards a lot more investors have been prepared to spend their cash and take the threat and make use of the cash to develop the jobs that is the point of the program.

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These projects do not wait about forever, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that a knockout post they are relaxing their analysis, and, in fact, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The local center part of the program is not. It belongs to an appropriations bill that was passed in 1992, and given that then that program has been expanded 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 expiry in September.


The process takes an excellent while to develop a job and afterwards to get the capitalists approved. And they do not want their cash flowing with up until they have been authorized. And the specter of the expiry of this Regional Center Program in September is currently preventing the advancement of projects.

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I wish 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 feature of the regular EB-5 legislation that belongs to the code. It just is a reality that the majority of the regional facilities that are merging financial investments have established those instead of high unemployment or in backwoods where half- million-dollar financial investments are permitted, which makes sense.