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The program is placed in an extremely weird and non-helpful administrative area for the excitement of international investment in the United States. Second, its scale is all incorrect. We are handing out excessive for too little of a financial investment. Further, increasing endeavor resources half a million bucks a tranche is, to say the least, inefficient.


The regional centers, with their half-million schemes, essentially damaged the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, ought to be regarding creating business entities, not easy financial investments. It needs to have to do with developing genuine work, not specify computations about the indirect production of work, which is now part of the regulations.


Possibly that is one of the factors why it has stopped working 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 also loaded with middlemen, both public and exclusive. The program has more than its share of detractions, which I will certainly obtain into later on if any person is interested.


This is a company that enjoys to say yes to candidates, but as the table in my testament reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually truly chatted about much. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever factor

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Seventh, in this program visas most likely to individuals that might not get them otherwise and to people whose planned investment is really 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 observations.


My estimate based on the investors' permit applications submitted 2 years after the first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not supply the type of information that we can make use of on this.


For every $100 of boosted international financial investment that year, the EB program contributed one penny. Under a much a lot more unsteady statistical base, the first applications of prospective immigrant capitalists, USCIS is informing journalists that the level of financial 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 eagerly anticipate your comments and concerns. [The ready statement of David North looks like a submission for the document.] Chairman Leahy. Thanks. 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 migration practice team.




Divine worked as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and then Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in private practice. He was elected, as I comprehend, vice head of state of the Organization to Spend in U.S.A., the nationwide market association of local.


Divine, we are pleased to have you below. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were used, it would be 1 percent of the migration annually to the USA. It is not near that yet, but it is growing and obtaining toward that. Specifically as USCIS, the company that oversees the program, has been making the rules more clear and the procedures much more sensible and clear for individuals who are organizing financial investments and for the investors who are investing, more individuals have actually agreed and able to put effort and cash right into the process to discover excellent projects and develop them, and after that extra investors have actually agreed to invest their cash and take the risk and utilize the cash to create the jobs that is the point of the program.

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These projects do not wait around forever, and USCIS comprehends that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, in reality, they are all set to deny applications that are not qualifying. And they do so, as was pointed out


The local facility component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to develop a project and after that to obtain the investors authorized. And they do not desire their money moving through up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already dissuading the development of jobs.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It just is a truth that many of the local centers that are pooling investments have set those in locations of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, check here which makes good sense.