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Initially, the program is put in a really odd and non-helpful governmental location for the excitement of international financial investment in the USA. Second, its range is all wrong. We are distributing excessive for also small of a financial investment. Further, increasing venture capital half a million bucks a tranche is, to say the least, inefficient.


The local facilities, with their half-million schemes, basically undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should be concerning producing service entities, not easy financial investments. It ought to be about producing actual jobs, not elaborate computations about the indirect production of work, which is now component of the regulations.


Probably that is among the reasons it has actually stopped working time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well full of middlemen, both public and exclusive. The program has more than its share of scandals, which I will obtain into later if anybody is interested.


This is a company that likes to say yes to applicants, yet as the table in my statement shows, USCIS police officers have a lot more problem with EB-5 applications than others. I believe that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to people who could not obtain them otherwise and to people whose scheduled investment is really less, according to the Federal Book, than the typical mean web worth of all American family members in 2007. Allow me broaden on one of my observations.


My estimate based upon the investors' permit applications filed 2 years after the 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 confirmed-- that is my quote. USCIS does not give the sort of information that we can utilize on this.


So for each $100 of enhanced foreign financial investment that year, the EB program contributed one dime. Under a a lot more unsteady analytical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I expect your comments and questions. [The ready declaration of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice group.




Divine functioned as Principal Advice of the USA Citizenship and Immigration Providers from July 2004 up until here November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Director. He has functioned thoroughly with the EB-5 program secretive method. He was elected, as I comprehend, vice head of state of the Organization to Invest in United States, the national market organization of local facilities.


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


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the immigration annually to the USA. It is not near that yet, however it is growing and obtaining towards that. Particularly as USCIS, the company that oversees the program, has actually been making the regulations clearer and the processes more sensible and clear for the individuals who are arranging investments and for the investors who are spending, even more people have actually agreed and able to put effort and cash right into the process to locate good jobs and establish them, and after that extra financiers have actually agreed to invest their money and take the threat and make use of the cash to create the jobs that is the point of the program.

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These jobs do not wait around for life, and USCIS comprehends that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, actually, they are all set to reject applications that are not certifying. And they do so, as was mentioned


The regional center component of the program is not. It is part of an appropriations bill that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes an excellent while to work up a project and after that to get the investors approved. And they do not want their cash moving through until they have been approved. And the specter of the expiry of this Regional Center Program in September is currently dissuading the advancement of tasks.

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I want to clarify that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 regulation that becomes part of the code. It just is a truth that the majority of the local centers that are pooling investments have set those instead of high joblessness or in backwoods where half- million-dollar investments are enabled, and that makes good sense.