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The program is put in a really strange and non-helpful administrative area for the excitement of global investment in the United States. Second, its range is all incorrect. We are handing out as well much for also little of a financial investment. Further, raising equity capital half a million dollars a tranche is, to claim the least, ineffective.


The regional centers, with their half-million plans, basically damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to be concerning producing organization entities, not passive financial investments. It must have to do with producing genuine tasks, not elaborate estimations regarding the indirect production of work, which is currently part of the regulation.


Probably that is among the reasons that it has actually fallen short time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also filled with middlemen, both public and private. The program has greater than its share of rumors, which I will certainly enter later on if anyone is interested.


This is a company that enjoys to say yes to candidates, but as the table in my testament shows, USCIS policemans have a lot more problem with EB-5 applications than others. I think that is something that nobody has truly discussed a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and for good factor

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Seventh, in this program visas go to individuals who could not get them any various other method and to individuals whose organized investment is in fact less, according to the Federal Book, than the average mean web worth of all American families in 2007. Allow me expand on among my observations.


My estimate based upon the financiers' permit applications submitted 2 years after the first financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not provide the type of data that we might use on this.


So for every $100 of raised international financial investment that year, the EB program contributed one cent. Under a much more unsteady analytical base, the initial applications of prospective immigrant investors, USCIS is informing reporters that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thank you for listening to me. I eagerly anticipate your comments and inquiries. [The ready declaration 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 firm's immigration method team.




Divine served as Principal Advice of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has functioned extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice head of state of the Organization to Purchase USA, the nationwide market organization visit homepage of regional facilities.


Divine, we are delighted to have you here. Please go in advance, sir. DECLARATION 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, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, however it is growing and getting toward that. Specifically as USCIS, the agency that manages the program, has been making the guidelines more clear and the processes much more sensible and clear for the individuals that are arranging financial investments and for the investors who are spending, more people have wanted and able to put effort and money into the procedure to discover good tasks and create them, and afterwards extra investors have wanted to spend their money and take the threat and use the money to develop the jobs that is the factor of the program.

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These jobs do not wait about permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, as a matter of fact, they are all set to reject applications that are not qualifying. And useful content they do so, as was mentioned


The regional facility part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and since then that program has actually been expanded 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes a good while to work up a project and after that to get the investors authorized. And they do not desire their cash flowing via till they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of tasks.

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I want to clear up that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 legislation that is component of the code. It simply is a reality that most of the local facilities that are merging financial investments have established those instead of high unemployment or in backwoods where half- million-dollar financial investments are enabled, and that you could look here makes sense.