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Initially, the program is put in a really odd and non-helpful governmental place for the stimulation of global financial investment in the USA. Second, its range is all incorrect. We are offering away too much for as well tiny of a financial investment. Even more, elevating financial backing fifty percent a million dollars a tranche is, to say the least, ineffective.

The regional facilities, with their half-million schemes, essentially undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to have to do with creating company entities, not easy financial investments. It ought to have to do with producing real tasks, not clarify computations concerning the indirect production of work, which is currently component of the legislation.


Perhaps that is one of the reasons that it has fallen short time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of middlemen, both public and exclusive. The program has more than its share of rumors, which I will enter later on if anyone is interested.


This is an agency that likes to claim yes to candidates, however as the table in my statement shows, USCIS officers have a lot a lot more problem with EB-5 applications than others. I believe that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and completely factor

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Seventh, in this program visas most likely to people who could not obtain them otherwise and to people whose scheduled investment is really less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Let me increase on one of my observations.


My quote based upon the capitalists' permit applications submitted 2 years after the first investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not provide the sort of information that we can make use of on this.


So for every single $100 of raised foreign investment that year, the EB program contributed one cent. Under a a lot more wobbly statistical base, the preliminary applications of prospective immigrant investors, USCIS is informing reporters that the level 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 anticipate your comments and concerns. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method team.

Divine worked as Principal Counsel of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was chosen, as I understand, vice head read more of state of the Organization to Invest in USA, the nationwide market association of regional.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, but it is growing and getting towards that. Specifically as USCIS, the company that manages the program, has actually been making the policies more clear and the processes much more logical and clear for the individuals that are organizing financial investments and for the financiers that are spending, more individuals have actually wanted and able to put effort and cash right into the process to discover good tasks and establish them, and afterwards extra investors have actually been ready to invest their cash and take the risk and make use of the money to create the tasks that is the factor of the program.

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These projects do not linger forever, and USCIS comprehends that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, as a matter of fact, they are prepared to reject 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 expense that was passed in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiration in September.


The process takes a great while to develop a project and after that to get the financiers approved. And they do not want their cash flowing via until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already discouraging the advancement of tasks.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that is part of the code. It just is a reality that the majority of the regional centers that are pooling investments have set those instead of high joblessness or in country locations where half- million-dollar financial investments are enabled, and that makes feeling.