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First, the program is positioned in an extremely odd and non-helpful governmental area for the stimulation of global investment in the United States. Second, its scale is all incorrect. We are handing out as well much for also tiny of an investment. Additionally, elevating venture funding fifty percent a million dollars a tranche is, to state the least, inefficient.


The regional centers, with their half-million schemes, essentially damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to have to do with developing business entities, not easy investments. It should be concerning producing real work, not clarify calculations about the indirect creation of tasks, which is now component of the regulation.


Maybe that is one of the reasons that it has actually fallen short time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also full of intermediaries, both public and personal. The program has greater than its share of rumors, which I will get into later if anyone is interested.


This is an agency that enjoys to say yes to candidates, however as the table in my testimony shows, USCIS officers have much a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever factor

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Seventh, in this program visas go to people who could not obtain them differently and to people whose planned investment is actually much less, according to the Federal Book, than the typical mean total assets of all American family members in 2007. Allow me broaden on one of my monitorings.


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


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

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Thanks for listening to me. I anticipate your comments and questions. [The prepared statement of David North appears as 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 method group.




Divine functioned as Principal Advice of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Director. He has worked thoroughly with the EB-5 program secretive practice. He was chosen, as I recognize, vice president of the Organization to Purchase U.S.A., the nationwide sector organization of regional centers.


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


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the migration each year to the United States. It is not near that yet, yet it is growing and getting toward that. Particularly as USCIS, the firm that oversees the program, has actually been making the policies clearer and the processes extra rational and clear for the people that are arranging investments and for the investors that are investing, even more people have agreed and able to put initiative and cash right into the process to locate great tasks and develop them, and after that more financiers have actually been willing to spend their cash and take the risk and utilize the cash to develop the tasks that is the factor of the program.

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These jobs do not linger for life, and USCIS understands that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, actually, they are prepared to deny applications that are not certifying. And they do so, as was stated


The local center component of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever since that program has been prolonged 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 great while to work up check here a job and then to obtain the financiers authorized. And they do not want their cash streaming via up until they have been accepted. 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 would love 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 function of the regular EB-5 law that becomes part of the code. It simply is a fact that the majority of the regional centers that are merging financial investments have established those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes sense.