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First, the program is put in a very strange and non-helpful governmental location for the stimulation of global financial investment in the United States. Second, its scale is all wrong. We are giving away excessive for too little of an investment. Further, elevating equity capital half a million dollars a tranche is, to claim the least, inefficient.


The local facilities, with their half-million schemes, essentially undercut the a lot 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, should be concerning producing organization entities, not easy investments. It needs to be concerning developing real jobs, not elaborate calculations about the indirect development of jobs, which is now part of the legislation.


Perhaps that is one of the reasons that it has fallen short year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with intermediaries, both public and personal. The program has more than its share of scandals, which I will get into later if any person is interested.


This is a firm that likes to state yes to candidates, but as the table in my testimony reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually truly discussed much. EB5 Regional Center Program. There are high prices of interior rejections in this program and for good factor

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Seventh, in this program visas go to individuals that could not get them differently and to individuals whose planned financial investment is actually much less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Allow me increase on among my observations.


My estimate based on the financiers' permit applications filed 2 years after the initial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not give the sort of data that we might make use of on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a a lot more wobbly statistical base, the initial applications of would-be immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to you can look here me. I anticipate your comments and questions. [The ready statement of David North looks like an entry 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 migration practice group.




Divine worked as Principal Counsel of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Supervisor. He has actually worked extensively with the EB-5 program secretive method. He was chosen, as I recognize, vice head of state of the Association to Buy U.S.A., the nationwide sector association of local centers.


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


At the majority of, if all 10,000 ports were utilized, it would be 1 percent of the migration yearly to the United States. It is not near that yet, but it is growing and getting toward that. Especially as USCIS, the firm that manages the program, has been making the policies clearer and the processes extra rational and clear for the individuals that are organizing investments and for the capitalists that are investing, more people have agreed and able to put effort and cash into the procedure to locate excellent jobs and develop them, and then extra investors have wanted to invest their cash and take the risk and make use of the cash to develop the work that is the factor of the program.

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These projects do not wait around permanently, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. Read Full Report That does not indicate that they are relaxing their scrutiny, and, in reality, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The regional center part of the program is not. It is component of an appropriations expense that was established in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.


The process takes a good while to develop a task and after that to obtain the capitalists authorized. And they do not want their money flowing with until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of tasks.

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I want to clear up 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 routine EB-5 regulation that belongs to the code. It simply is a reality that a lot of the regional centers that are merging investments have established those in areas of high unemployment or in backwoods where half- million-dollar investments are enabled, which makes good sense.