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First, the program is positioned in a very weird and non-helpful governmental place for the stimulation of worldwide investment in the USA. Second, its scale is all incorrect. We are distributing also much for also little of a financial investment. Additionally, raising venture funding half a million bucks a tranche is, to state the least, inefficient.


The regional facilities, with their half-million plans, essentially damaged the extra sensible 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 have to do with producing organization entities, not easy financial investments. It needs to be regarding creating real jobs, not specify computations regarding the indirect development of jobs, which is now part of the regulations.


Perhaps that is just one of the reasons why it has stopped working every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also loaded with middlemen, both public and personal. The program has greater than its share of rumors, which I will certainly get right into later if anyone is interested.


This is an agency that enjoys to say yes to applicants, however as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually actually talked about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and completely factor

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Seventh, in this program visas most likely to individuals that might not obtain them any kind of various other way and to individuals whose planned financial investment is in fact less, according to the Federal Get, than the ordinary mean internet worth of all American family members in 2007. Let me increase on one of my observations.


My estimate based on the financiers' copyright applications submitted 2 years after the first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the kind of data that we might use on this.


So for every $100 of increased international financial investment that year, the EB program contributed one cent. Under a far more wobbly analytical base, the preliminary applications of would-be immigrant investors, USCIS is telling reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and concerns. [The prepared declaration of David North shows up as a submission for the record.] 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 method group.




Divine functioned as Principal Guidance of the USA Citizenship and find more Immigration Providers from July 2004 till November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has actually functioned extensively with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state of the Association to Invest in United States, the national sector association of local.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 ports were used, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, but it is expanding and getting toward that. Particularly as USCIS, the company that supervises the program, has actually been making the rules more clear and the processes more logical and clear for individuals who are arranging investments and for the financiers who are investing, more individuals have actually agreed and able to put effort and money into the process to discover good jobs and create them, and afterwards a lot more investors have agreed to spend their cash and take the danger and make use of the cash to create the jobs that is the factor of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be permanent, and company website it needs to be done now and not nearer to the date of expiration in September.


The procedure takes a great while to look at this site develop a job and after that to get the financiers authorized. And they do not desire their cash flowing via until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of jobs.

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I would love to clarify that the Regional Facility Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 legislation that is part of the code. It simply is a fact that a lot of the regional facilities that are merging investments have actually established those instead of high joblessness or in rural locations where half- million-dollar investments are permitted, and that makes good sense.