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First, the program is placed in a very odd and non-helpful administrative place for the stimulation of worldwide investment in the USA. Second, its range is all incorrect. We are distributing way too much for too little of a financial investment. Better, raising venture funding fifty percent a million dollars a tranche is, to state the least, ineffective.


The regional facilities, with their half-million plans, essentially undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, should have to do with producing company entities, not passive investments. It should have to do with producing real work, not clarify computations regarding the indirect creation of jobs, which is currently component of the regulation.


Perhaps that is one of the reasons it has stopped working year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too loaded with intermediaries, both public and exclusive. The program has more than its share of rumors, which I will enter into later if anybody is interested.


This is an agency that loves to say yes to candidates, but as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and for excellent reason

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Seventh, in this program visas most likely to people that can not obtain them any type of other method and to people whose organized financial investment is really much less, according to the Federal Get, than the ordinary mean net well worth of all American households in 2007. Let me broaden on among my observations.


My estimate based upon the investors' permit applications submitted 2 years after the initial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not give the sort of information that we could use on this.


For every $100 of increased foreign financial investment that year, the EB program contributed one penny. Under a far more unsteady statistical base, the first applications of would-be immigrant investors, USCIS is telling journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I expect your remarks and questions. [The prepared 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 firm's migration technique group.




Divine acted as Chief Counsel of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Deputy Director. He has actually worked thoroughly with the EB-5 program in exclusive method. He was chosen, as I comprehend, vice head of state of the Organization to Purchase U.S.A., the national industry association of regional facilities.


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


At a lot of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, however it is expanding and obtaining toward that. Specifically as USCIS, the firm that supervises the program, has been making the policies more clear and the processes more reasonable and clear for individuals that are arranging investments and for the capitalists who are investing, even more people have agreed and able to place initiative and cash into the procedure to find excellent projects and establish them, and after that much more capitalists have wanted to spend their cash and take the risk and use the money to create the work that is the factor of the program.

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These jobs do not wait around permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, actually, they are ready to deny applications that are not qualifying. And they do so, as was discussed


The local center part of the program is not. It belongs to an read here appropriations expense that was established in 1992, and given that then that program has actually been extended five 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 day of expiration in September.


The procedure takes a great while to work up a task and afterwards to get the investors approved. And they do not desire their money flowing through up until they have been authorized. And the specter of the expiration of see this site this Regional Facility Program in September is already inhibiting the development of projects.

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I wish to clarify that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 legislation that reference belongs to the code. It just is a reality that the majority of the local centers that are merging financial investments have actually set those in areas of high unemployment or in country locations where fifty percent- million-dollar investments are enabled, and that makes sense.