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Initially, the program is positioned in a very strange and non-helpful governmental location for the stimulation of worldwide financial investment in the USA. Second, its scale is all wrong. We are handing out way too much for too little of an investment. Further, raising financial backing half a million dollars a tranche is, to say the least, ineffective.

The local centers, with their half-million systems, basically undercut the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, must be regarding producing company entities, not passive financial investments. It should have to do with developing actual tasks, not specify computations about the indirect production of work, which is now part of the regulation.


Perhaps that is just one of the reasons that it has actually fallen short year after year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too full of middlemen, both public and private. The program has greater than its share of rumors, which I will enter later if anyone is interested.


This is an agency that likes to claim yes to candidates, but as the table in my statement shows, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has actually discussed 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 go to people that can not obtain them any kind of other means and to individuals whose planned financial investment is actually much less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Allow me broaden on one of my monitorings.


My estimate based on the capitalists' copyright applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not supply the type of data that we might make use of on this.


For every $100 of raised foreign financial investment that year, the EB program added one cent. Under a a lot more unsteady statistical base, the preliminary applications of would-be immigrant financiers, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I anticipate your remarks and concerns. [The ready statement of David North appears as a submission for the document.] 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 migration this article method team.

Divine functioned as Chief Advice of the USA Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Director. He has worked thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Association to Spend in United States, the nationwide sector association of regional.


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


At most, if all 10,000 ports were used, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, however it is growing and obtaining toward that. Particularly as USCIS, the agency that manages the program, has been making the regulations clearer and the procedures a lot more logical and clear for individuals that are arranging financial investments and for the investors who are investing, even more individuals have wanted and able to put effort and cash into the process to discover excellent jobs and establish them, and after that a lot more financiers have agreed to spend their money and take the danger and use the cash to produce the work that is the point of the program.

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These tasks do not wait around permanently, and USCIS comprehends that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their Our site examination, and, in fact, they prepare to reject applications that are not qualifying. And they do so, as was mentioned

The regional center part of the program is not. It belongs to an appropriations costs that was established in 1992, and ever since that program has actually 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 expiry in September.


The process takes a good while to develop a task and afterwards to get the financiers approved. And they do not desire their cash streaming with until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already dissuading news the development of projects.

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I want to clarify that the Regional Center Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 law that is component of the code. It just is a fact that a lot of the regional centers that are merging investments have set those in places of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes sense.