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First, the program is placed in a really strange and non-helpful bureaucratic area for the excitement of worldwide investment in the United States. Second, its range is all wrong. We are handing out excessive for as well tiny of an investment. Additionally, elevating financial backing half a million dollars a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million schemes, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must have to do with producing organization entities, not passive financial investments. It must have to do with creating actual work, not specify computations concerning the indirect development of tasks, which is now part of the regulations.


Possibly that is among the reasons why it has actually fallen short year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will get involved in later if anyone is interested.


This is a company that loves to state yes to candidates, however as the table in my statement reveals, USCIS police officers have much more trouble with EB-5 applications than others. I believe that is something that nobody has really discussed a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently reason

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Seventh, in this program visas go to individuals that could not obtain them any type of various other means and to individuals whose scheduled financial investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Allow me broaden on among my observations.


My estimate based upon the financiers' permit applications filed 2 years after the initial 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 quote. USCIS does not give the sort of information that we can use on this.


For every $100 of boosted foreign financial investment that year, the EB program contributed one penny. Under a a lot more shaky statistical base, the initial applications of potential immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I look forward to your comments and questions. [The ready declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice team.




Divine acted as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and then Performing Replacement Director. He has worked extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Organization to Spend in U.S.A., the nationwide industry association of local.


Divine, we are pleased to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, 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. find here Thanks for having me.


At most, 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 getting towards that. Especially as USCIS, the firm that manages the program, has been making the rules more clear and the procedures more rational and clear for individuals who are organizing investments and for the capitalists who are spending, even more individuals have been willing and able to put effort and money into the procedure to discover excellent tasks and develop them, and after that more financiers have agreed to invest their money and take the threat and utilize the cash to develop the jobs that is the point of the program.

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These jobs do not wait around forever, and USCIS comprehends that and are attempting to speed up the basics program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, actually, they are all set to reject applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It is part of an appropriations costs that was established in 1992, and given that then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes a good while to function up a task and after that to obtain the capitalists accepted. And they do not desire their cash streaming with until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already discouraging the development of tasks.

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I would love to clarify that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million reference is a function of the routine EB-5 law that belongs to the code. It simply is a fact that the majority of the local centers that are pooling financial investments have set those in locations of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes good sense.