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Initially, the program is placed in an extremely odd and non-helpful bureaucratic place for the excitement of international financial investment in the United States. Second, its range is all incorrect. We are handing out way too much for too small of an investment. Even more, increasing venture funding half a million bucks a tranche is, to claim the least, ineffective.


The local facilities, with their half-million schemes, basically damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, need to be about producing service entities, not passive financial investments. It should have to do with creating real jobs, not clarify estimations about the indirect creation of tasks, which is now part of the regulations.


Possibly that is among the reasons it has stopped working year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with middlemen, both public and private. The program has even more than its share of rumors, which I will obtain right into later if any person is interested.


This is an agency that likes to say yes to candidates, yet as the table in my testimony shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas go to people who could not get them otherwise and to individuals whose scheduled financial investment is in fact much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Let me expand on one of my monitorings.


My price quote based upon the capitalists' environment-friendly card applications submitted 2 years after the very first investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not offer the kind of data that we can make use of on this.


For every $100 of raised international investment that year, the EB program contributed one dime. Under a far more unsteady statistical base, the first applications of potential immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us check over here approve that.

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Thanks for listening to me. I expect your remarks and questions. [The prepared declaration of David North appears as an entry 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 technique group.




Divine offered as Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year this link in which he was Performing Director, and after that Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program in personal technique. He was chosen, as I comprehend, vice president of the Association to Invest in United States, the national industry association of local.


Divine, we are happy to have you right here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN 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 used, it would be 1 percent of the migration every year to the United States. It is not near that yet, yet it is growing and obtaining towards that. Especially as USCIS, the firm that manages the program, has actually been making the guidelines more clear and the processes much more rational and clear for the people who are arranging investments and for the financiers that are spending, more people have wanted and able to place initiative and cash into the process to find good jobs and develop them, and after that more capitalists have been ready to spend their money and take the threat and make use of the money to develop the jobs that is the factor of the program.

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These tasks do not wait around for life, and USCIS comprehends that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, actually, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The local facility part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be long-term, and it needs Web Site to be done currently and not nearer to the date of expiration in September.


The procedure takes an excellent while to work up a project and after that to obtain the investors accepted. And they do not want their money flowing through until they have been accepted. And the specter of the expiration of this Regional Center Program in September is already preventing the development of jobs.

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I would such as to clear up that the Regional Center Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 legislation that belongs to the code. It simply is a fact that a lot of the local facilities that are pooling financial investments have actually established those in locations of high unemployment or in rural areas where half- million-dollar investments are allowed, and that makes sense.