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Initially, the program is positioned in an extremely odd and non-helpful governmental location for the stimulation of international investment in the USA. Second, its scale is all wrong. We are distributing way too much for too little of a financial investment. Additionally, elevating financial backing fifty percent a million bucks a tranche is, to say the least, inefficient.

The local facilities, with their half-million systems, basically undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be about producing service entities, not passive financial investments. It needs to be regarding creating genuine tasks, not clarify calculations regarding the indirect development of jobs, which is currently part of the regulation.


Maybe that is just one of the reasons that it has actually failed year after year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well filled with intermediaries, both public and private. The program has even more than its share of detractions, which I will certainly get involved in later if any person is interested.


This is an agency that enjoys to say yes to candidates, but 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 chatted around a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas go to people who can not obtain them any kind of various other method and to individuals whose scheduled investment is actually less, according to the Federal Get, than the average mean total assets of all American households in 2007. Let me broaden on one of my observations.


My price quote based on the financiers' permit applications filed 2 years after the initial financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not give the sort of information that we can utilize on this.


For every $100 of raised international financial investment that year, the EB program contributed one cent. Under a much a lot more unsteady statistical base, the first applications of here prospective immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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

Divine acted as Principal Advise of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Deputy Director. He has functioned extensively with the EB-5 program secretive practice. He was chosen, as I comprehend, vice president of the Association to Spend in USA, the nationwide market organization of local.


Divine, we are delighted to have you here. Please go in advance, 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. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Specifically as USCIS, the company that oversees the program, has actually been making the guidelines clearer and the procedures much more reasonable and clear for individuals that are arranging investments and for the capitalists who are spending, more people have agreed and able to put effort and cash into the procedure to locate great tasks and establish them, and after that more investors have actually wanted to invest their cash and take the risk and make use of the cash to create the tasks that is the factor of the program.

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These jobs do not wait about permanently, and USCIS recognizes that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was pointed out

The regional facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiration in September.


The process takes a great while to develop a job and after that to get the financiers approved. And they do not want their cash moving through up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already discouraging the advancement of tasks.

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I would love to make clear that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 law that belongs to the code. It simply is a truth that a lot of the local centers that are merging investments have established those in areas of high unemployment or in country areas where fifty percent- million-dollar investments are permitted, which makes good sense.