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First, the program is positioned in a very strange and non-helpful governmental location for the excitement of global financial investment in the USA. Second, its range is all incorrect. We are distributing too much for as well small of an investment. Additionally, elevating equity capital half a million dollars a tranche is, to state the least, ineffective.


The local centers, with their half-million systems, essentially damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with creating business entities, not easy investments. It must have to do with developing genuine work, not clarify calculations regarding the indirect development of jobs, which is now component of the regulation.


Maybe that is just one of the reasons that it has actually failed time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with middlemen, both public and personal. The program has even more than its share of detractions, which I will enter into later if any person is interested.


This is a company that loves to state yes to candidates, yet as the table in my testimony shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has actually truly discussed much. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to people who might not get them otherwise and to people whose scheduled investment is in fact much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Allow me broaden on one of my monitorings.


My price quote based on the investors' copyright applications submitted 2 years after the initial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not offer the type of data that we could use on this.


For every $100 of raised foreign financial investment that year, the EB program added one penny. Under a a lot more unsteady statistical base, the first applications of potential immigrant financiers, USCIS is telling 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 listening to me. I anticipate your remarks and questions. [The prepared declaration of David North appears as 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 you could check here of the company's immigration method group.




Divine worked as Chief Advise of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state of the Organization to Buy USA, the nationwide market association of local facilities.


Divine, we are happy to have you here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, this page LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you 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 United States. It is not near that yet, yet it is expanding and getting towards that. Particularly as USCIS, the company that looks after the program, has actually been making the regulations clearer and the processes extra sensible and clear for the people that are organizing financial investments and for the financiers that are investing, even more individuals have actually been eager and able to put effort and cash right into the procedure to locate great projects and establish them, and after that a lot more investors have agreed to invest their money and take the risk and make use of the cash to produce the tasks that is the point of the program.

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These tasks do not wait around permanently, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The regional facility component of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a project browse around here and after that to get the investors approved. And they do not want their cash moving through till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of jobs.

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I want to make clear that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 law that is component of the code. It simply is a fact that a lot of the local facilities that are merging investments have established those instead of high unemployment or in country areas where fifty percent- million-dollar investments are allowed, and that makes good sense.