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First, the program is put in a really weird and non-helpful administrative place for the stimulation of international investment in the USA. Second, its range is all incorrect. We are distributing also much for as well tiny of a financial investment. Additionally, increasing financial backing half a million dollars a tranche is, to state the least, inefficient.

The local facilities, with their half-million schemes, essentially undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be concerning creating company entities, not passive investments. It ought to have to do with producing actual jobs, not clarify estimations regarding the indirect development of tasks, which is currently component of the regulation.


Perhaps that is one of the factors why 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 awkward, and the program is also full of intermediaries, both public and private. The program has greater than its share of rumors, which I will certainly get into later if anybody is interested.


This is a company that loves to claim yes to candidates, yet as the table in my testimony reveals, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually actually spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and for excellent reason

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Seventh, in this program visas most likely to people that could not get them differently and to individuals whose scheduled investment is in fact less, according to the Federal Get, than the average mean total assets of all American families in 2007. Let me increase on one of my observations.


My price quote based on the capitalists' copyright applications submitted 2 years after the very first financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not give the kind of information that we might use on this.


For every $100 of enhanced foreign financial investment that year, the EB program contributed one penny. Under a much a lot more wobbly statistical base, the preliminary applications of potential immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for listening to me. I anticipate your remarks and concerns. [The ready declaration of David North shows up as an entry 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 method group.

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 Supervisor, and then Performing Deputy Director. He has worked thoroughly with the EB-5 program in exclusive method. He was elected, as I comprehend, vice head of state of the Organization to Invest in United States, the national sector organization of regional.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, blog here DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At most, if all 10,000 slots were used, it would be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is expanding and getting towards that. Specifically as USCIS, the company that supervises the program, has actually been making the guidelines clearer and the procedures more sensible and clear for the people that are organizing financial investments and for the financiers who are investing, even more individuals have agreed and able to place effort and cash right into the procedure to discover good jobs and create them, and after that extra investors have wanted to invest their money and take the risk and use the money to create the tasks that is the point of the program.

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These projects do not wait around permanently, and USCIS understands that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of helpful hints fact, they are ready to refute applications that are not qualifying. And they do so, as was discussed

The regional center part of the program is not. It becomes part of site here an appropriations expense that was passed in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to function up a project and afterwards to get the investors accepted. And they do not want their money flowing through till they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is already discouraging the advancement of jobs.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 regulation that is component of the code. It just is a fact that the majority of the regional centers that are merging financial investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.