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The program is put in a really strange and non-helpful bureaucratic area for the stimulation of worldwide financial investment in the United States. Second, its range is all wrong. We are offering away too much for also little of a financial investment. Additionally, raising equity capital fifty percent a million dollars a tranche is, to state the least, inefficient.

The local facilities, with their half-million plans, basically undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to have to do with creating business entities, not passive investments. It needs to have to do with producing actual jobs, not clarify calculations concerning the indirect creation of tasks, which is currently component of the regulations.


Possibly that is one of the reasons it has actually failed year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of intermediaries, both public and personal. The program has greater than its share of scandals, which I will get involved in later on if anyone is interested.


This is a company that likes to claim yes to candidates, however as the table in my testimony reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and for great reason

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Seventh, in this program visas go to people who could not get them differently and to people whose organized financial investment is in fact much less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Allow me broaden on one of my observations.


My estimate based on the investors' copyright applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not supply the type of data that we could use on this.


For every $100 of increased foreign investment that year, the EB program added one dime. Under a much a lot more unsteady statistical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I look onward to your comments and concerns. [The ready statement of David North looks like a submission for the Extra resources document.] Chairman Leahy. Thank you. 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 Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was chosen, as I recognize, vice head of state of the Organization to Buy United States, the nationwide industry organization 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 U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, but it is expanding and getting towards that. Particularly as USCIS, the firm that supervises the program, has been making the policies clearer and the procedures a lot more logical and clear for the individuals who are organizing investments and for a fantastic read the investors who are spending, more individuals have been ready and able to put initiative and money into the procedure to find good jobs and create them, and then extra financiers have actually wanted to spend their cash and take the risk and utilize the cash to develop the jobs that is the point of the program.

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These tasks do not linger forever, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does navigate to this site not suggest that they are relaxing their scrutiny, and, as a matter of fact, they are all set to refute applications that are not qualifying. And they do so, as was discussed

The regional center component of the program is not. It belongs to an appropriations costs that was enacted in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes an excellent while to function up a task and then to obtain the investors approved. And they do not desire their cash streaming through up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the development of projects.

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I wish to clarify that the Regional Facility Program is not the same as the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It just is a truth that most of the regional centers that are pooling investments have actually set those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes sense.