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First, the program is placed in a really weird and non-helpful administrative location for the stimulation of global financial investment in the USA. Second, its scale is all incorrect. We are offering away excessive for as well tiny of an investment. Further, raising equity capital fifty percent a million bucks a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million plans, essentially damaged the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to have to do with producing company entities, not easy investments. It needs to have to do with creating actual jobs, not specify calculations concerning the indirect creation of work, which is now component of the legislation.


Probably that is among the reasons it has actually fallen short every year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with intermediaries, both public and exclusive. The program has even more than its share of detractions, which I will certainly enter into later on if anybody is interested.


This is a company that loves to say yes to candidates, yet as the table in my testimony shows, USCIS policemans have a lot more problem with EB-5 applications than others. I believe that is something that no one has actually actually discussed a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and forever factor

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Seventh, in this program visas most likely to people who could not get them differently and to individuals whose scheduled financial investment is in fact much less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Allow me increase on one of my observations.


My estimate based upon the investors' permit applications submitted 2 years after the very first financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not give the kind of data that we could use on this.


For every $100 of increased international financial investment that year, the EB program contributed one dime. Under a a lot more shaky statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I expect your comments and concerns. [The ready declaration of David North appears as a submission 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 company's migration practice group.




Divine acted as Chief Advise of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Deputy Supervisor. He has functioned extensively with the EB-5 program in personal method. He was elected, as I recognize, vice president of the Association to Buy United States, the national market association of regional facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 slots were made use of, it would be 1 percent of the migration each 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 policies more clear and the procedures more sensible and clear for individuals who are organizing financial investments and for the capitalists who are spending, even more people have actually agreed and able to place effort and money right into the process to locate good projects and establish them, and afterwards more investors have actually been ready to invest their money and take the risk and make use of the cash to develop the tasks that is the point of the program.

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These tasks do not wait about for life, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in fact, they are all set to deny applications that are not qualifying. And they do so, as was discussed


The regional facility component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiration in September.


The website process takes a good while to function up a task and after that to get the financiers approved. And they do not desire their cash moving with until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is already preventing 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 function of the regular EB-5 regulation that is part of the code. It just is a truth that the majority of the regional facilities that are pooling investments have set those instead of high unemployment or in backwoods where half- million-dollar financial investments are allowed, and that makes feeling.