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Initially, the program is placed in an extremely strange and non-helpful governmental area for the stimulation of international financial investment in the United States. Second, its scale is all wrong. We are handing out also much for as well small of a financial investment. Additionally, raising venture resources half a million dollars a tranche is, to claim the least, ineffective.


The local centers, with their half-million plans, basically undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must be about producing service entities, not easy investments. It must have to do with producing genuine work, not specify estimations regarding the indirect production of tasks, which is currently component of the regulations.


Perhaps that is among the reasons it has stopped working year after year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly get right into later if anybody is interested.


This is a firm that enjoys to state yes to candidates, yet as the table in my testament reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually actually chatted around much. EB5 Regional Center Program. There are high prices of internal denials in this program and forever factor

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Seventh, in this program visas go to people that could not obtain them differently and to people whose scheduled investment is in fact less, according to the Federal Reserve, than the average mean net worth of all American family members in 2007. Allow me expand on among my observations.


My estimate based on the investors' environment-friendly card applications submitted 2 years after the first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not offer the kind of information that we could make use of on this.


For every $100 of enhanced foreign investment that year, the EB program added one cent. Under a a lot more shaky statistical base, EB5 Regional Center Program the preliminary applications of would-be immigrant financiers, USCIS is telling reporters 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 paying attention to me. I expect your comments and inquiries. [The prepared declaration of David North shows up as a submission for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration technique group.




Divine offered as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program secretive practice. He was chosen, as I understand, vice president of the Organization to Invest in United States, the nationwide industry organization of local.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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, Senator Grassley, and others.


At the majority of, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is growing and obtaining towards that. Specifically as USCIS, the company that manages the program, has been making the rules more clear and the procedures much more rational and clear for the individuals who are arranging financial investments and for the investors that are spending, even more individuals have actually agreed and able to put effort and money right into the procedure to discover great tasks and establish them, and then more capitalists have actually been ready to invest their cash and take the risk and utilize the money to develop the work that is the factor of the program.

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These tasks do not wait around forever, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, actually, they prepare to deny applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations expense that was established in 1992, and given that then that program has been expanded 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 expiry in September.


The process takes a great while to function up a project and afterwards to obtain the investors authorized. And they do not desire their cash moving with till they have been approved. And the specter of the expiry of this Regional Center Program in September is already preventing the growth of tasks.

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I would certainly like to clear up that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 regulation that belongs to the code. It simply is a truth that a lot of the local centers that are pooling investments have set those in areas of high joblessness or in country areas where fifty percent- million-dollar investments are permitted, which makes sense.