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Initially, the program is put in an extremely strange and non-helpful administrative place for the stimulation of international financial investment in the USA. Second, its scale is all wrong. We are distributing way too much for too tiny of a financial investment. Better, increasing equity capital fifty percent a million bucks a tranche is, to say the least, inefficient.


The regional facilities, with their half-million schemes, basically undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should be about producing company entities, not passive investments. It needs to be regarding developing actual work, not specify estimations about the indirect creation of tasks, which is now part of the regulation.


Possibly that is among the reasons that it has fallen short time after time to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too full of middlemen, both public and exclusive. The program has greater than its share of rumors, which I will certainly obtain right into later if anybody is interested.


This is a firm that loves to say yes to candidates, but as the table in my statement shows, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and permanently factor

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Seventh, in this program visas go to individuals that could not get them any type of other means and to individuals whose organized investment is really much less, according to the Federal Reserve, than the average mean net worth of all American households in 2007. Let me broaden on one of my monitorings.


My price quote based upon the capitalists' copyright applications submitted 2 years after the first investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not give the type of data that we can use on this.


For every $100 of raised foreign investment that year, the EB program contributed one dime. Under a far more wobbly statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of investment in the just-concluded view year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your comments and concerns. [The ready statement 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, Discover More and Berkowitz. He is the head of the firm's migration method team.




Divine served as Principal Advise of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has functioned extensively with the EB-5 program in private method. He was elected, as I recognize, vice president of the Association to Invest in USA, the nationwide sector organization of local.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 ports were used, it would be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and obtaining towards that. Especially as USCIS, the firm that looks after the program, has been making the policies more clear and the processes a lot more sensible and clear for individuals who are organizing financial investments and for the capitalists that are spending, more people have wanted and able to put effort and money into the procedure to locate great projects and develop them, and afterwards a lot more investors have actually been eager to invest their money and take the risk and use the cash to create the tasks that is the factor of the program.

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These jobs do not wait about forever, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, as a matter of fact, they are all set to refute applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiry in September.


The process takes a great while to develop a task and afterwards to obtain the capitalists approved. And they do not desire their cash flowing with up until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the growth of projects.

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I would like to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 legislation that is part of the code. It just is a truth that a lot of the regional centers that see this website are pooling financial investments have actually established those in locations of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes sense.