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The program is put in a very odd and non-helpful governmental area for the excitement of worldwide investment in the United States. Second, its scale is all incorrect. We are handing out excessive for as well tiny of a financial investment. Better, increasing equity capital fifty percent a million dollars a tranche is, to state the least, inefficient.


The local facilities, with their half-million systems, basically undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should have to do with creating company entities, not easy investments. It needs to be regarding producing real jobs, not clarify computations regarding the indirect development of jobs, which is now component of the regulations.


Maybe that is among the reasons why it has failed every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with intermediaries, both public and private. The program has greater than its share of rumors, which I will enter later on if anyone is interested.


This is an agency that loves to say yes to candidates, yet as the table in my statement shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely factor

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Seventh, in this program visas most likely to individuals who can not get them otherwise and to individuals whose planned investment is really much less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Let me expand on among my observations.


My quote based upon the investors' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not give the type of data that we can make use of on this.


For every $100 of boosted international financial investment that year, the EB program added one cent. Under a a lot more shaky statistical base, the initial applications of prospective immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I expect your comments and concerns. [The ready statement of David North looks like a submission for the document.] Chairman Leahy. Thanks. Our following 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 Principal Advise of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program in private method. He was chosen, as I recognize, vice president of the Organization to Invest in U.S.A., the national market association of regional facilities.


Divine, we are happy 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 PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, however it is expanding and getting toward that. Particularly as USCIS, the agency that supervises the program, has been making the guidelines clearer and the processes much more logical and clear for individuals that are arranging investments and for the capitalists who are spending, more individuals have actually agreed and able to put initiative and cash right into the procedure to discover great jobs and establish them, and after that a lot more capitalists have agreed to invest their money and take the threat and use the cash to create the tasks that is the factor of the program.

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These projects do not wait about forever, and USCIS recognizes that and are trying to speed up the program, speed up Bonuses the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they are ready to reject applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It becomes part of an appropriations costs that was established 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 requires to be done now and not nearer to the date of expiration in September.


The process takes a good while to develop a project and afterwards to Homepage obtain the investors approved. And they do not desire their cash flowing through until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the advancement of jobs.

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I would such as to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 law that belongs to the code. It simply is a fact that a lot of the regional centers that are merging financial investments have established those in places of high joblessness or in backwoods where visit their website fifty percent- million-dollar financial investments are allowed, which makes sense.