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The program is placed in an extremely weird and non-helpful administrative place for the stimulation of global financial investment in the United States. Second, its scale is all wrong. We are handing out excessive for too little of a financial investment. Even more, increasing equity capital half a million dollars a tranche is, to state the least, ineffective.


The local centers, with their half-million systems, basically damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should be concerning producing company entities, not easy financial investments. It should have to do with producing actual work, not clarify calculations concerning the indirect development of jobs, which is now component of the legislation.


Probably that is one of the reasons it has fallen short every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will get right into later if anybody is interested.


This is a firm that enjoys to claim yes to applicants, but as the table in my testament shows, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually talked around a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and forever reason

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Seventh, in this program visas go to people who can not obtain them any kind of various other means and to people whose planned investment is really less, according to the Federal Book, than the typical mean internet well worth of all American families in 2007. Let me expand on one of my observations.


My quote based on the capitalists' eco-friendly card applications filed 2 years after the first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not supply the type of information that we might use on this.


For every $100 of boosted international financial investment that year, the EB program added one dime. Under a a lot more wobbly analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thank you for listening to me. I anticipate your comments and inquiries. [The prepared statement of David North looks like a submission for the record.] 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 of the company's migration practice team.




Divine worked as Principal Advise of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Director, and then Performing Deputy Director. He has worked thoroughly with the EB-5 program in exclusive practice. He was elected, as I comprehend, vice head of state of the Organization to Invest in U.S.A., the national industry association of local.


DECLARATION 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, Legislator Grassley, and others.


At many, if all 10,000 ports were utilized, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the firm that supervises the program, has been making the guidelines more clear and the procedures much more sensible and clear for the individuals who are arranging financial investments and for the financiers that are investing, even more individuals have been ready and able to put initiative and cash right into the process to find good tasks and establish them, and after that more capitalists have agreed to spend their money and take the threat and use the cash to develop the work that is the point of the program.

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These projects do not wait around forever, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they are all set to deny applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It is component of an appropriations bill that was established in 1992, and ever since that program has been extended five 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 expiration in September.


The process takes a good while to work up a job and then to obtain the capitalists accepted. And they do not desire their money streaming with until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is currently discouraging the growth of tasks.

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I would like to clear up that the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It just is a truth that many of the regional centers that are pooling EB5 Regional Center Program financial investments have set those in places of high unemployment or in backwoods where half- million-dollar investments are allowed, which makes good sense.