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First, the program is put in a really odd and non-helpful administrative area for the stimulation of global financial investment in the USA. Second, its scale is all incorrect. We are distributing too much for as well small of a financial investment. Further, elevating financial backing half a million dollars a tranche is, to say the least, inefficient.


The regional facilities, with their half-million schemes, basically undercut the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, must have to do with developing organization entities, not passive financial investments. It ought to be regarding producing real jobs, not specify estimations about the indirect production of work, which is currently component of the regulation.


Perhaps that is among the reasons why it has fallen short time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also full of intermediaries, both public and personal. The program has greater than its share of rumors, which I will get involved in later on if anybody is interested.


This is a firm that loves to claim yes to applicants, yet as the table in my testimony shows, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that nobody has actually really discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently reason

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Seventh, in this program visas go to people who could not obtain them differently and to individuals whose planned financial investment is really much less, according to the Federal Reserve, than the ordinary mean total assets of all American households in 2007. Let me expand on one of my observations.


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


For every $100 of enhanced foreign investment that year, the EB program added one cent. Under a a lot more unsteady analytical base, the preliminary applications of prospective immigrant investors, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for listening to me. I anticipate your comments and concerns. [The prepared statement of David North shows up as a submission for the document.] Chairman Leahy. Thank you. 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 technique team.




Divine worked as Chief Counsel of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Director. He has worked thoroughly with the EB-5 program secretive method. He was elected, as I recognize, vice president of the Association to Buy USA, the national industry organization of local centers.


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


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the USA. It is not near that yet, but it is growing and obtaining toward that. Specifically as USCIS, the agency that looks after the program, has been making the guidelines clearer and here are the findings the processes a lot more rational and clear for individuals who are organizing investments and for the capitalists who are spending, even more individuals have actually agreed and able to put initiative and money right into the procedure to find excellent tasks and develop them, and after that extra investors have actually been willing to invest their money and take the danger and make use of the cash to create the tasks that is the point of the program.

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These jobs do not wait around forever, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes a good while to develop a task and after that to obtain the capitalists authorized. And they do not want their money moving through till they have been approved. And the specter of the expiration of this Regional Facility see page Program in September is currently dissuading the growth of projects.

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I wish to clear up that the Regional Facility Program is not the like 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 just is a fact that the majority of the local centers that are merging investments have established those in locations of high unemployment or in rural locations where fifty percent- million-dollar financial investments are permitted, and that makes feeling.