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First, the program is positioned in a really odd and non-helpful bureaucratic place for the stimulation of worldwide financial investment in the United States. Second, its range is all incorrect. We are distributing also much for too small of a financial investment. Better, elevating venture capital half a million dollars a tranche is, to claim the least, ineffective.


The regional centers, with their half-million schemes, essentially damaged the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to be regarding creating business entities, not passive investments. It must have to do with creating genuine jobs, not elaborate computations concerning the indirect production of work, which is currently part of the regulation.


Perhaps that is one of the reasons that it has actually stopped working year after year to reach the legal 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 private. The program has greater than its share of rumors, which I will obtain right into later on if anybody is interested.


This is a firm that likes to say yes to applicants, yet as the table in my statement reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and completely reason

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Seventh, in this program visas most likely to people who can not get them any other method and to individuals whose planned financial investment is actually much less, according to the Federal Get, than the typical mean net well worth of all American family members in 2007. Allow me broaden on among my observations.


My estimate based upon the financiers' permit applications submitted 2 years after the very first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not offer the type of information that we can use on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a much more wobbly statistical base, the initial applications of prospective immigrant financiers, USCIS is informing reporters that the level of investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I look onward to your remarks and inquiries. [The ready declaration of David North appears as an entry for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice group.




Divine acted as Chief Advice of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Director. He has actually worked extensively with the EB-5 program in exclusive method. He was chosen, as I understand, vice president of the Association to Invest in USA, the national sector association of regional.


Divine, we are pleased to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the immigration annually to the United States. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the company that looks after the program, has actually been making the guidelines clearer and the processes a lot more sensible and clear for individuals who are organizing financial investments and for the financiers who are spending, more people have agreed and able to place effort and cash right into the procedure to discover great projects and create them, and afterwards more investors have agreed to spend their money and take the risk and make use of the money to develop the work that is the factor of the program.

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These jobs do not wait about permanently, and USCIS comprehends that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, as a matter of fact, they are all set to refute applications that are not qualifying. And they do so, as was pointed out


The regional facility component of the program is not. It belongs to an appropriations bill that was passed in 1992, and because then that program has been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiry in September.


The process takes an excellent while to develop a task and afterwards to get the financiers approved. And they do not want their money streaming with until they have get more info actually been approved. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the advancement of projects.

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I wish to make clear that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 regulation that is part of the code. It simply is a fact that the majority of the regional facilities that are merging investments have actually set those in places of high joblessness or in country locations where half- million-dollar investments are enabled, which makes good sense.