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Initially, the program is put in an extremely weird and non-helpful bureaucratic place for the stimulation of global investment in the United States. Second, its range is all incorrect. We are handing out excessive for also tiny of an investment. Better, raising equity capital half a million bucks a tranche is, to state the least, inefficient.


The local centers, with their half-million plans, essentially damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, ought to be about producing company entities, not passive investments. It must be concerning creating actual work, not specify calculations regarding the indirect development of work, which is currently component of the legislation.


Probably that is one of the reasons that it has actually failed time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well filled with middlemen, both public and exclusive. The program has more than its share of scandals, which I will certainly enter into later if any person is interested.


This is a firm that loves to claim yes to applicants, yet as the table in my testament reveals, USCIS police officers have much more trouble with EB-5 applications than others. I think that is something that no one has actually really discussed a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to individuals who can not get them any kind of other means and to people whose planned investment is in fact much less, according to the Federal Get, than the ordinary mean web well worth of all American family members in 2007. Allow me expand on one of my observations.


My quote based on the capitalists' eco-friendly card applications filed 2 years after the first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not supply the type of data that we might use on this.


For every $100 of enhanced international investment that year, the EB program added one cent. Under a much more wobbly statistical base, the first applications of prospective immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thank you for listening to me. I anticipate your comments and questions. [The ready statement of David North looks like a submission for the document.] Chairman Leahy. Thanks. 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 migration method team.




Divine acted as Chief Guidance of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and after that Acting Deputy Supervisor. He has functioned extensively with the EB-5 program in exclusive technique. He was chosen, as I comprehend, vice president of the Organization to Buy U.S.A., the nationwide market organization of regional centers.


Divine, we are pleased to have you here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator 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 yearly to the United States. It is not near that yet, yet it is growing and getting toward that. Particularly as USCIS, the company that supervises the program, has actually been making the guidelines more clear and the processes extra sensible and clear for the individuals that are arranging investments and for the financiers that are spending, even more people have agreed and able to place effort and cash into the process to find good projects and create them, and after that much more investors have actually agreed to invest their cash and take the threat and use the cash to develop the work that is the point of the program.

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These jobs do not click here wait about forever, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to work up a job and afterwards to get the investors approved. And they do not want their money flowing via up until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the growth of tasks.

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I would certainly like to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 law that is part of the code. It just is a reality that the majority of the regional centers that are merging financial investments have set those in locations of high joblessness or in country locations where half- million-dollar investments are enabled, and that makes good sense.