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Initially, the program is positioned in a very strange and non-helpful administrative place for the stimulation of worldwide financial investment in the USA. Second, its range is all incorrect. We are handing out way too much for too tiny of a financial investment. Even more, elevating equity capital half a million dollars a tranche is, to claim the least, ineffective.


The local facilities, with their half-million systems, basically undercut the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must be about developing company entities, not easy investments. It must have to do with creating actual tasks, not elaborate computations concerning the indirect production of tasks, which is now part of the legislation.


Maybe that is one of the reasons that it has fallen short every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will certainly get involved in later if anyone is interested.


This is a firm that enjoys to say yes to applicants, however as the table in my testament shows, USCIS policemans have a lot extra trouble with EB-5 applications than others. I believe that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently factor

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Seventh, in this program visas most likely to people who might not obtain them otherwise and to people whose scheduled financial investment is in fact much less, according to the Federal Get, than the average mean total assets of all American families in 2007. Let me broaden on one of my observations.


My quote based on the capitalists' eco-friendly card applications filed 2 years after the first financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not offer the type of data that we can make use of on this.


For every $100 of enhanced international investment that year, the EB program contributed one dime. Under a far more unsteady statistical base, the preliminary applications of prospective immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for listening to me. I eagerly anticipate your comments and concerns. [The ready statement of David North shows up as a submission for the document.] 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 firm's migration technique team.




Divine functioned as Principal Advise of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in exclusive method. He was elected, as I comprehend, vice head of state of the Association to Spend in U.S.A., the national market organization of local.


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


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the company that manages the program, has been making the rules clearer and the procedures much more sensible and clear for individuals who are arranging financial investments and for the investors who are investing, more individuals have agreed and able to place effort and money into the procedure to find excellent projects and create them, and then a lot more investors have agreed to spend their money and take the threat and utilize the cash to develop the work that is the point of the program.

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These jobs do not linger permanently, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The local 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 procedure takes a good while to function up a project and afterwards to get the investors authorized. And they do not desire their money moving through up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth of jobs.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 legislation that is component of the code. It simply is a truth that a lot of the regional facilities that are merging financial investments have set those in locations of high joblessness or in rural locations where fifty percent- million-dollar financial investments are allowed, which makes sense.