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The program is put in an extremely strange and non-helpful bureaucratic place for the stimulation of worldwide financial investment in the United States. Second, its range is all wrong. We are distributing excessive for as well tiny of a financial investment. Even more, raising equity capital half a million bucks a tranche is, to state the least, ineffective.


The regional centers, with their half-million plans, essentially damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to be concerning producing company entities, not passive investments. It should be about creating genuine jobs, not elaborate computations concerning the indirect development of work, which is now part of the legislation.


Probably that is one of the reasons that it has fallen short every year to get to the legal goal of 10,000 financial 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 greater than its share of detractions, which I will certainly enter later on if anybody is interested.


This is a firm that loves to claim yes to applicants, however as the table in my testimony reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals that can not get them any other way and to people whose planned investment is really much less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Allow me increase on among my observations.


My estimate based upon the capitalists' permit applications filed 2 years after the first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not provide the sort of data that we might use on this.


So for every single $100 of raised foreign financial investment that year, the EB program contributed one penny. Under a far more shaky analytical base, the first applications of would-be immigrant investors, USCIS is informing journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for listening to me. I expect your comments and inquiries. [The ready declaration 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, and Berkowitz. He is the head of the company's immigration practice group.




Divine acted as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Director. He has functioned thoroughly with the EB-5 program in personal technique. He was elected, as I comprehend, vice head of state of the Association to Invest in U.S.A., the nationwide industry organization of regional.


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


At many, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, yet it is expanding and getting toward that. Specifically as USCIS, the company that supervises the program, has actually been making the policies clearer and the procedures extra sensible and clear for individuals who are arranging financial investments and for the financiers that are investing, even more individuals have wanted and able to place initiative and money right into the procedure to locate excellent projects and establish them, and after that extra investors have agreed to invest their cash and take the danger and make use of the money to create the jobs that is the factor of the program.

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These tasks do not wait about permanently, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, in fact, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The regional facility part of the program is not. It is component of an appropriations costs that was established in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to develop a task and after that to obtain the financiers authorized. And they do not want their money flowing through up until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already dissuading the advancement of jobs.

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I would love to clarify that the Regional Center Program is not the very same as the half-million-dollar more info thing. The idea of half a million or a million is a feature of the regular EB-5 regulation that becomes part of the code. It just is a truth that the majority of the regional centers that are pooling investments have actually established those instead of high joblessness or in country locations where half- million-dollar investments are allowed, and that makes good sense.