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The program is positioned in a very odd and non-helpful administrative place for the stimulation of global investment in the United States. Second, its range is all wrong. We are giving away too much for too tiny of a financial investment. Further, increasing equity capital half a million dollars a tranche is, to say the least, ineffective.


The regional facilities, with their half-million plans, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with creating service entities, not easy financial investments. It needs to be concerning creating genuine work, not specify calculations concerning the indirect creation of work, which is currently component of the legislation.


Possibly that is among the reasons it has failed time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also filled with intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will certainly get involved in later on if any person is interested.


This is a firm that likes to state yes to applicants, yet as the table in my testament shows, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever factor

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Seventh, in this program visas go to individuals that can not obtain them differently and to people whose scheduled financial investment is actually much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Let me expand on one of my observations.


My estimate based upon the investors' environment-friendly card applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not provide the sort of data that we can use on this.


So for every single $100 of enhanced international investment that year, the EB program contributed one cent. Under a a lot more wobbly statistical base, the first applications of would-be immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I eagerly anticipate your comments and concerns. [The ready statement of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method team.




Divine worked as Principal Guidance of the USA Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has actually functioned extensively with the EB-5 program in personal technique. He was chosen, as I understand, vice head of state of the Organization to Purchase USA, the national market association of regional facilities.


Divine, we are happy to have you right here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and check that others. Thanks for having me.


At a lot of, if all 10,000 ports were utilized, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Particularly as USCIS, the agency that manages the program, has actually been making the regulations clearer and the procedures more rational and clear for the individuals that are arranging investments and for the financiers who are investing, more people have actually been eager and able to put effort and cash right into the process to find excellent jobs and create them, and after that a lot more financiers have wanted to invest their money and take the risk and make use of the cash to produce the jobs that is the point of the program.

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These projects do not linger for life, and USCIS comprehends that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does read this not mean that they are relaxing their scrutiny, and, in reality, they prepare to reject applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It belongs to an appropriations expense that was enacted in 1992, and considering that then that program has actually been prolonged 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes an excellent while to work up a project and afterwards to get the investors authorized. And they do not desire their money flowing through until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already dissuading the growth of jobs.

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I would like to clear up that visit the site the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 legislation that belongs to the code. It just is a reality that many of the local facilities that are pooling financial investments have actually established those instead of high joblessness or in country areas where half- million-dollar financial investments are allowed, and that makes feeling.