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The program is positioned in a really strange and non-helpful administrative location for the stimulation of international financial investment in the United States. Second, its range is all incorrect. We are giving away way too much for as well tiny of a financial investment. Even more, raising venture capital half a million dollars a tranche is, to claim the least, inefficient.


The local facilities, with their half-million schemes, essentially damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must have to do with creating service entities, not easy investments. It should be about producing real jobs, not elaborate computations regarding the indirect development of jobs, which is currently component of the regulation.


Maybe that is one of the reasons it has actually stopped working time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also loaded with intermediaries, both public and private. The program has greater than its share of rumors, which I will get involved in later if anyone is interested.


This is an agency that loves to say yes to candidates, yet as the table in my testimony reveals, USCIS policemans have much extra trouble with EB-5 applications than others. I assume that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and permanently reason

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Seventh, in this program visas go to individuals who might not get them differently and to individuals whose organized investment is really much less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Allow me increase on among my observations.


My estimate based on the investors' permit applications filed 2 years after the very first investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not give the sort of information that we could make use of on this.


For every $100 of enhanced international investment that year, the EB program contributed one cent. Under a much a lot more shaky statistical base, the initial applications of potential immigrant investors, USCIS is telling reporters that the degree 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 look onward to your remarks and inquiries. [The prepared statement of David North shows up as a submission for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method team.




Divine offered as Chief Guidance of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Deputy Director. He has functioned extensively with the EB-5 program secretive method. He was elected, as I recognize, vice head of state of the Organization to Invest in U.S.A., the national industry organization of this contact form local.


Divine, we are delighted to have you below. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were made use of, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, however it is expanding and getting toward that. Particularly as USCIS, the company that manages the program, has been making the policies clearer and the processes more rational and clear for individuals that are arranging financial investments and for the investors who are investing, even more people have actually wanted and able to place initiative and money right into the process to discover excellent projects and develop them, and after that extra investors have been prepared to invest their cash and take the risk and make use of the money to create the work that is the point great site of the program.

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These projects do not wait about forever, and USCIS comprehends that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, 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 is component of an appropriations costs that was established in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiry in September.


The process takes a great while to work up a project and then to get the investors accepted. And they do not desire their cash streaming with till they have been accepted. And the specter of the expiration of this Regional Center Program in September is already inhibiting the advancement of jobs.

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I would love to make clear that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function see page of the normal EB-5 law that becomes part of the code. It simply is a fact that most of the regional facilities that are pooling financial investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes good sense.