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The program is placed in an extremely odd and non-helpful bureaucratic area for the stimulation of global investment in the United States. Second, its scale is all incorrect. We are handing out way too much for as well small of a financial investment. Additionally, raising equity capital fifty percent a million dollars a tranche is, to claim the least, ineffective.


The local facilities, with their half-million schemes, essentially damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to have to do with creating business entities, not easy investments. It ought to be regarding producing genuine tasks, not clarify estimations concerning the indirect production of work, which is now part of the legislation.


Maybe that is just one of the reasons that it has actually failed every year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will enter into later on if any person is interested.


This is an agency that likes to claim yes to candidates, but as the table in my testimony shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I think that is something that no one has actually really discussed much. EB5 Regional Center Program. There are high rates of inner rejections in this program and for great factor

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Seventh, in this program visas go to individuals who might not obtain them differently and to people whose organized investment is in fact less, according to the Federal Book, than the average mean internet worth of all American family members in 2007. Let me increase on one of my monitorings.


My price quote based on the financiers' copyright applications submitted 2 years after the initial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not give the kind of data that we might use on this.


So for each $100 of raised foreign investment that year, the EB program added one penny. Under a far more shaky analytical base, the initial applications of would-be immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and inquiries. [The prepared declaration of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method team.




Divine functioned as Chief Advice of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program in personal practice. He was elected, as I recognize, vice head of state of the Association to Invest in U.S.A., the nationwide market association of local centers.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 ports were utilized, it would be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Specifically as USCIS, the agency that supervises the program, has actually been making the regulations more clear and the procedures more rational and clear for the individuals who are arranging financial investments and for the financiers who are investing, even more individuals have been ready and able to put effort and cash right into the procedure to discover good projects and develop them, and after that more investors have agreed to spend their cash and take the threat and utilize the cash to create the tasks that is the point of the program.

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


The regional center part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and because then that program has actually been expanded 5 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 expiry in September.


The procedure takes a great while to function up a task and after that to get the financiers authorized. And they do not want their money flowing through until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is already dissuading the development of projects.

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I would certainly like to clear up that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 law that is component of the code. It just is a reality that the majority of the local centers that are pooling investments have actually established those in locations of high unemployment or in country locations EB5 Regional Center Program where half- million-dollar investments are allowed, and that makes good sense.