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Initially, the program is placed in a really odd and non-helpful governmental place for the stimulation of international investment in the United States. Second, its range is all incorrect. We are distributing too much for too small of an investment. Even more, raising venture capital half a million dollars a tranche is, to say the least, inefficient.


The local facilities, with their half-million schemes, essentially damaged the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should have to do with producing company entities, not easy financial investments. It ought to be regarding creating actual tasks, not elaborate calculations concerning the indirect creation of work, which is now component of the regulation.


Maybe that is just one of the factors why it has fallen short year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with intermediaries, both public and private. The program has greater than its share of scandals, which I will enter later on if any person is interested.


This is a company that enjoys to state yes to applicants, yet as the table in my statement reveals, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that nobody has truly talked around much. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals who might not get them differently and to people whose organized investment is in fact much less, according to the Federal Reserve, than the typical mean total assets of all American families in 2007. Let me expand on among my observations.


My quote based on the capitalists' environment-friendly card applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not give the sort of information that we might make use of on this.


For every $100 of enhanced international investment that year, the EB program added one cent. Under a far more shaky analytical base, the initial applications of would-be immigrant investors, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow their website us approve that.

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Thanks for listening to me. I eagerly anticipate your remarks and concerns. [The prepared declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. 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 immigration technique team.




Divine served as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive technique. He was chosen, as I comprehend, vice head of state of the Organization to Buy USA, the national industry association of regional centers.


Divine, we are happy to have you here. Please go ahead, sir. DECLARATION 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. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were used, it would be 1 percent of the migration every year to the USA. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the agency that manages the program, has actually been making the rules more clear and the procedures much more sensible and clear for the people that are arranging investments and for the financiers who are investing, more people have been willing and able to place initiative and money right into the process to locate great projects and establish them, and then much more financiers have actually agreed to invest their money and take the threat and make use of the cash to produce the jobs that is the factor of the program.

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These jobs do not wait about permanently, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was pointed out


The this local center component of the program is not. It is component of an appropriations costs that was passed in 1992, and since then that program has actually been extended five 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 date of expiration in September.


The procedure takes an excellent while to work up a project and afterwards to obtain the financiers accepted. And they do not desire their cash flowing via up until they have been accepted. And the specter of the expiration of this Regional Center Program in September is already discouraging the growth of projects.

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I would such as 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 link function of the regular EB-5 legislation that is part of the code. It just is a reality that a lot of the regional facilities that are merging investments have actually established those instead of high unemployment or in backwoods where half- million-dollar financial investments are allowed, which makes feeling.