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The program is placed in an extremely odd and non-helpful administrative location for the excitement of international financial investment in the United States. Second, its scale is all wrong. We are offering away excessive for also little of an investment. Further, elevating equity capital half a million dollars a tranche is, to state the least, inefficient.


The regional facilities, with their half-million plans, essentially damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to have to do with developing company entities, not passive financial investments. It should be concerning producing actual tasks, not specify computations about the indirect production of tasks, which is currently part of the regulation.


Possibly that is just one of the reasons that it has actually failed time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also loaded with intermediaries, both public and personal. The program has more than its share of detractions, which I will certainly get involved in later if anyone is interested.


This is an agency that likes to claim yes to candidates, however as the table in my testament reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually really spoken around a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and permanently factor

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Seventh, in this program visas go to people that might not obtain them otherwise and to people whose planned investment is in fact less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Let me expand on among my monitorings.


My price quote based upon the financiers' permit applications filed 2 years after the first investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not give the sort of information that we might utilize on this.


So for each $100 of boosted international financial investment that year, the EB program contributed one dime. Under a a lot more shaky statistical base, the initial applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of 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 anticipate your comments and concerns. [The ready declaration of David North appears as a submission for the record.] 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 company's immigration practice group.




Divine worked as Principal Advice of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Director. He has functioned thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice president of the Organization to Invest in United States, the national sector association of regional.


Divine, we are happy to have you right here. Please go on, sir. DECLARATION 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, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and getting towards that. Specifically as USCIS, the company that supervises the program, has actually been making the guidelines more clear and the processes a lot more website rational and clear for the people that are organizing investments and for the capitalists that are investing, even more individuals have actually been prepared and able to place initiative and money into the procedure to locate good jobs and create them, and after that much more financiers have actually wanted to invest their cash and take the danger and use the cash to create the jobs that is the point of the program.

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These projects do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, in truth, they are prepared to deny applications that are not qualifying. And they do so, as was mentioned


The regional facility part of the program is not. It belongs to an appropriations bill that was established in 1992, and given that then that program has 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 day of expiration in September.


The procedure takes a good while to function up a task and after that to get the financiers authorized. And they do not want their money flowing with till they have been approved. And the specter of the expiration of this Regional Facility Program in September is already dissuading the growth of projects.

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I would love to clarify 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 legislation that is part of the code. It just is a reality that most of the local centers that are pooling financial investments have actually established those instead of high unemployment or in backwoods where half- million-dollar investments are permitted, which makes sense.