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The program is positioned in a really strange and non-helpful governmental location for the stimulation of worldwide investment in the United States. Second, its scale is all incorrect. We are offering away too much for too small of an investment. Even more, increasing equity capital fifty percent a million dollars a tranche is, to claim the least, inefficient.


The local centers, with their half-million schemes, essentially undercut the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to be about producing service entities, not passive investments. It should have to do with producing real jobs, not elaborate computations about the indirect production of tasks, which is now component of the legislation.


Maybe that is just one of the reasons that it has fallen short year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also filled with middlemen, both public and private. The program has greater than its share of detractions, which I will certainly get right into later on if anyone is interested.


This is an agency that likes to say yes to candidates, yet as the table in my testimony shows, USCIS police officers have much a lot more problem with EB-5 applications than others. I assume that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas go to people who could not obtain them differently and to people whose organized financial investment is really less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Let me broaden on one of my observations.


My estimate based on the capitalists' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not offer the type of information that we might make use of on this.


For every $100 of enhanced international investment that year, the EB program added one dime. Under a a lot more unsteady statistical base, the initial applications of potential immigrant investors, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I eagerly anticipate your comments and inquiries. [The prepared declaration of David North looks like a submission 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 served as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 More hints till November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program in exclusive technique. He was chosen, as I understand, vice president of the Association to Invest in USA, the nationwide market organization of local.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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 certainly be 1 percent of the additional hints migration yearly to the United States. It is not near that yet, but it is expanding and getting towards that. Especially as USCIS, the agency that supervises the program, has actually been making the policies clearer and the processes extra reasonable and clear for the individuals who are organizing investments and for the investors who are spending, more people have actually been ready and able to place effort and money into the procedure to locate great jobs and develop them, and after that more capitalists have actually been eager to spend their cash and take the threat and utilize the cash to develop the tasks that is the factor of the program.

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These jobs do not wait around permanently, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It check is component of an appropriations bill that was passed in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a great while to develop a job and after that to get the financiers authorized. And they do not desire their cash moving through till they have actually 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 certainly like to make clear that the Regional Center Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 law that belongs to the code. It just is a fact that a lot of the regional centers that are pooling investments have established those in areas of high unemployment or in rural locations where half- million-dollar financial investments are permitted, which makes feeling.