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First, the program is put in an extremely weird and non-helpful administrative area for the stimulation of global investment in the United States. Second, its scale is all incorrect. We are providing away as well much for as well tiny of an investment. Further, elevating financial backing half a million bucks a tranche is, to state the least, ineffective.


The regional facilities, with their half-million systems, essentially undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should have to do with developing service entities, not easy financial investments. It must be concerning creating actual jobs, not clarify computations regarding the indirect production of jobs, which is now component of the regulations.


Probably that is just one of the reasons that it has failed time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with middlemen, both public and exclusive. The program has more than its share of detractions, which I will enter into later if anybody is interested.


This is a company that likes to say yes to applicants, yet as the table in my testimony shows, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and for excellent factor

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Seventh, in this program visas most likely to individuals who might not obtain them differently and to people whose organized investment is actually less, according to the Federal Reserve, than the typical mean net worth of all American families in 2007. Allow me increase on among my monitorings.


My estimate based on the capitalists' permit applications submitted 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 about $191 million validated-- that is my quote. USCIS does not supply the kind of information that we can use on this.


So for every $100 of increased international financial investment that year, the EB program contributed one dime. Under a far more wobbly analytical base, the initial applications of would-be immigrant investors, USCIS is telling journalists that the degree of investment in the just-concluded year straight from the source had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I eagerly anticipate your remarks and questions. [The prepared declaration of David North appears as a submission for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice team.




Divine served as Chief Advice of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has actually functioned extensively with the EB-5 program in private technique. He was chosen, as I comprehend, vice head of state of the Association to Spend in United States, the national sector association of regional.


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. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 ports were made use of, it would be 1 percent of the migration every year to the United States. It is not near that yet, but it is growing and obtaining toward that. Especially as USCIS, the navigate here company that looks after the program, has been making the regulations more clear and the processes much more logical and clear for the people that are arranging financial investments and for the financiers that are spending, more individuals have been eager and able to put initiative and money right into the procedure to discover great jobs and develop them, and afterwards a lot more capitalists have wanted to spend their cash and take the risk and utilize the cash to produce the jobs that is the factor of the program.

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These jobs do not wait around forever, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, as a matter of fact, they are prepared to deny applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It is component of an appropriations costs that was enacted in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes an excellent while to develop a project and afterwards to obtain the financiers approved. And they do not want their cash flowing through till they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already discouraging the development of tasks.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 law that becomes part of the code. It just is a truth that a lot of the local facilities that are merging financial investments have click over here now actually set those in places of high joblessness or in backwoods where half- million-dollar investments are enabled, and that makes good sense.