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First, the program is positioned in a very odd and non-helpful governmental location for the stimulation of global investment in the United States. Second, its scale is all wrong. We are distributing way too much for as well small of a financial investment. Even more, raising financial backing half a million dollars a tranche is, to state the least, inefficient.


The regional facilities, with their half-million schemes, essentially damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must be concerning developing business entities, not easy investments. It must be about developing genuine jobs, not specify calculations about the indirect creation of jobs, which is now part of the regulations.


Probably that is just one of the factors why it has actually fallen short year after year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well filled with intermediaries, both public and private. The program has greater than its share of detractions, which I will get involved in later on if anybody is interested.


This is a company that enjoys to say yes to candidates, however as the table in my testimony shows, USCIS policemans have far more difficulty with EB-5 applications than others. I assume that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high prices of internal denials in this program and forever factor

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Seventh, in this program visas go to individuals who can not get them otherwise and to people whose organized financial investment is really less, according to the Federal Reserve, than the average mean net well worth of all American families in 2007. Let me increase on among my observations.


My estimate based on the investors' permit applications filed 2 years after the very first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not give the sort of data that we might make use of on this.


So for every $100 of increased foreign investment that year, the EB program added one penny. Under a a lot more unsteady statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. I expect your comments and inquiries. [The ready statement of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine acted as Chief Counsel of the USA Citizenship and blog Migration Services from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Director. He has functioned extensively with the EB-5 program secretive technique. He was chosen, as I understand, vice president of the Association to Purchase USA, the nationwide industry association of local facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (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 be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is growing and obtaining toward that. Particularly as USCIS, the company that supervises the program, has been making the guidelines clearer and the processes extra sensible and clear for individuals that are arranging financial investments and for the capitalists that are investing, more individuals have actually been eager and able to place initiative and money into the process to locate great jobs and establish them, and afterwards much more investors have actually wanted to invest their cash and take the threat and make use of the cash to develop the work that is the factor of the program.

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These projects do not wait about permanently, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It is component of an appropriations expense that was passed in 1992, and since then that program has been extended five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration this link in September.


The process takes a great while to develop a job and afterwards to get the financiers approved. And they do not want their money flowing through until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of tasks.

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I want to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that becomes part of webpage the code. It simply is a truth that a lot of the local facilities that are merging investments have actually set those in places of high joblessness or in backwoods where half- million-dollar financial investments are allowed, which makes sense.