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Initially, the program is positioned in a really strange and non-helpful bureaucratic location for the excitement of global financial investment in the USA. Second, its scale is all wrong. We are providing away excessive for too small of an investment. Even more, elevating equity capital fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional centers, with their half-million plans, basically damaged the more 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, need to be about producing service entities, not easy financial investments. It ought to be concerning producing genuine work, not elaborate computations regarding the indirect production of work, which is now component of the regulations.


Maybe that is among the reasons that it has fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with intermediaries, both public and private. The program has more than its share of scandals, which I will enter later on if anybody is interested.


This is an agency that likes to state yes to applicants, however as the table in my statement shows, USCIS policemans have a lot more problem with EB-5 applications than others. I think that is something that nobody has actually really discussed a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and for excellent factor

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Seventh, in this program visas go to individuals that can not obtain them any various other way and to individuals whose planned investment is actually much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Allow me broaden on one of my observations.


My price quote based on the capitalists' environment-friendly card applications filed 2 years after the first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not supply the kind of data that we could utilize on this.


So for every $100 of enhanced foreign financial investment that year, the EB program added one dime. Under a a lot more unsteady analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I look ahead to your comments and questions. [The ready statement of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration technique group.




Divine acted as Principal Guidance of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Supervisor. He has worked extensively with the EB-5 program in exclusive method. He was elected, as I recognize, vice president of the Association to Invest in United States, the national industry association of regional.


Divine, we are delighted to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 ports visit this site right here were used, it would be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding and getting towards that. Especially as USCIS, the firm that looks after the program, has actually been making the rules clearer and the procedures a lot more sensible and clear for the people who are arranging financial investments and for the investors who are spending, even more people have actually agreed and able to put effort and cash right into the process webpage to discover excellent projects and establish them, and afterwards much more financiers have actually wanted to spend their money and take the danger and make use of the cash to produce the work that is the point of the program.

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These tasks do not wait around forever, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The local facility part of the program is not. It is component of an appropriations bill that was enacted in 1992, and given that then that program has been expanded 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to function up a project and then to get the capitalists approved. And they do not desire their cash flowing via check my site up until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the development of jobs.

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I would 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 function of the regular EB-5 regulation that belongs to the code. It just is a truth that most of the local centers that are merging financial investments have established those instead of high joblessness or in rural areas where fifty percent- million-dollar financial investments are allowed, and that makes good sense.