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The program is placed in a very weird and non-helpful bureaucratic place for the excitement of global financial investment in the United States. Second, its scale is all wrong. We are offering away too much for as well small of a financial investment. Even more, elevating equity capital fifty percent a million bucks a tranche is, to state the least, ineffective.


The regional facilities, with their half-million schemes, essentially undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must have to do with creating company entities, not easy financial investments. It must be about producing actual jobs, not clarify estimations regarding the indirect development of tasks, which is currently part of the regulation.


Maybe that is one of the reasons why it has actually failed year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of middlemen, both public and personal. The program has even more than its share of rumors, which I will enter later on if anybody is interested.


This is a firm that enjoys to say yes to candidates, however as the table in my statement shows, USCIS police officers have far more trouble with EB-5 applications than others. I think that is something that no one has really spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever factor

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Seventh, in this program visas go to individuals that might not obtain them otherwise and to individuals whose planned financial investment is really much less, according to the Federal Book, than the ordinary mean net well worth of all American families in 2007. Let me increase on one of my observations.


My price quote based on the financiers' permit applications filed 2 years after the very first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not provide the type of data that we can make use of on this.


For every $100 of raised international investment that year, the EB program contributed one penny. Under a much extra wobbly statistical base, the preliminary applications of potential immigrant capitalists, USCIS is informing reporters that the degree of financial investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I look forward to your comments and concerns. [The ready declaration of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice group.




Divine offered as Chief Advise of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Director. He has actually worked thoroughly with the EB-5 program in personal technique. He was elected, as I recognize, vice president of the Organization to Purchase U.S.A., the national market organization of regional facilities.


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 States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the agency that manages the program, has been making the guidelines more clear and the processes more logical and more info clear for the people that are arranging investments and for the capitalists who are spending, more individuals have agreed and able to put effort and cash into the procedure to discover great jobs and develop them, and after that a lot more investors have been willing to spend their money and take the danger and utilize the cash to create the work that is the factor of the program.

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These jobs do not wait around forever, and USCIS understands that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a great while to develop a job and after that to obtain the financiers authorized. And they do not want their money moving with until they have been accepted. And the specter of the expiry of this Regional Center Program in September is already preventing the advancement of tasks.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 regulation that is part of the code. It just is a truth that a lot of the regional centers that are merging financial investments have actually set those in areas of high joblessness or in rural areas where half- million-dollar investments are permitted, and that makes good sense.