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First, the program is positioned in a really odd and non-helpful bureaucratic place for the stimulation of worldwide investment in the USA. Second, its scale is all incorrect. We are offering away as well much for too tiny of an investment. Better, increasing venture capital half a million dollars a tranche is, to say the least, inefficient.


The regional facilities, with their half-million plans, basically undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to be regarding producing company entities, not passive financial investments. It should have to do with producing real tasks, not clarify estimations regarding the indirect development of tasks, which is now component of the legislation.


Perhaps that is one of the reasons that it has stopped working time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with intermediaries, both public and personal. The program has greater than its share of rumors, which I will certainly enter later on if any person is interested.


This is a company that likes to state yes to candidates, yet as the table in my statement shows, USCIS police officers have a lot more problem with EB-5 applications than others. I believe that is something that nobody has actually truly chatted around a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently reason

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


My price quote based upon the financiers' permit applications filed 2 years after the very first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not provide the sort of information that we could make use of on this.


So for every $100 of enhanced international financial investment that year, the EB program added one penny. Under a a lot more unsteady statistical base, the first applications of would-be immigrant financiers, USCIS is informing 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 anticipate your comments and questions. [The prepared declaration of David North shows up as a submission for the document.] 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 firm's immigration practice team.




Divine functioned as Chief Advice of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Performing Deputy Director. He has worked extensively with the EB-5 program in exclusive practice. He was elected, as I comprehend, vice president of the read the full info here Association to Invest in USA, the national sector association of regional centers.


Divine, we are thrilled to have you right here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Especially as USCIS, the firm that supervises the program, has actually been making the rules more clear and the processes much more rational and clear for individuals that are arranging financial investments and for the capitalists who are spending, even more individuals have wanted and able to place initiative and money right into the procedure to locate great jobs and establish them, and afterwards a lot more financiers have wanted to invest their cash and take the risk and utilize the cash to create the tasks that is the point of the program.

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These tasks do not linger for life, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The regional center part of the program is not. It is part of an appropriations bill that was passed in 1992, and since then that program has actually been prolonged five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry why not try these out in September.


The procedure takes a great while to function up a job and after that to get the financiers accepted. And they do not want their money moving through up until they have been approved. And the specter of the expiration of this Regional Center Program in September is already inhibiting the growth of projects.

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I would certainly like to clarify that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 regulation that is part of the code. It simply is a truth that a lot of the local centers that are pooling investments have actually established those in areas of high unemployment or in backwoods where fifty percent- million-dollar investments are click here to read permitted, and that makes sense.