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Initially, the program is put in a really strange and non-helpful governmental area for the stimulation of global investment in the USA. Second, its scale is all incorrect. We are distributing way too much for also small of an investment. Further, increasing venture resources fifty percent a million bucks a tranche is, to claim the least, ineffective.


The local centers, with their half-million plans, basically damaged the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, must be concerning developing service entities, not passive financial investments. It must have to do with developing actual jobs, not specify calculations regarding the indirect development of tasks, which is currently part of the regulations.


Possibly that is just one of the reasons that it has failed every year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and exclusive. The program has more than its share of detractions, which I will enter later on if any person is interested.


This is an agency that enjoys to claim yes to candidates, but as the table in my testimony reveals, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that nobody has actually truly discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals who can not obtain them any kind of various other way and to people whose scheduled financial investment is actually much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Allow me expand on among my monitorings.


My estimate based upon the financiers' permit applications submitted 2 years after the initial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not supply the sort of data that we could utilize on this.


So for every single $100 of increased international financial investment that year, the EB program added one penny. Under a a lot more wobbly analytical base, the initial applications of would-be immigrant investors, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I eagerly anticipate your comments and inquiries. [The prepared statement of David North shows up as an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method group.




Divine functioned as Principal Advise of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Director. He has actually functioned extensively with the EB-5 program secretive technique. He was chosen, as I recognize, vice president of the Organization to Purchase United States, the national sector organization of regional facilities.


Divine, we are happy to have you below. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were used, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, yet it is growing and getting toward that. Particularly as USCIS, the company that looks after the program, has been making the guidelines more clear and the procedures more reasonable and clear for the people that are arranging investments and for the financiers that are investing, more individuals have actually wanted and able to place effort and money into the process to discover good projects and develop them, and then extra capitalists have wanted to spend their money and take the danger and use the click resources money to produce the jobs that is the factor of the program.

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These projects do not wait about for life, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, in reality, they are ready to reject applications that are not certifying. And they do so, as was discussed


The regional center component of the program is not. It is part of an appropriations expense that was established in 1992, and since then that program has actually 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 date of expiry in September.


The process takes a good while to develop a task and then to get the capitalists approved. And they do not desire their money streaming via up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in why not find out more September is currently find this discouraging the advancement of jobs.

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I would like to clear up that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 law that is part of the code. It just is a fact that the majority of the regional facilities that are pooling financial investments have set those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, which makes sense.