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The program is put in a very odd and non-helpful bureaucratic location for the stimulation of international financial investment in the United States. Second, its scale is all incorrect. We are distributing excessive for too tiny of an investment. Even more, elevating venture resources half a million dollars a tranche is, to say the least, inefficient.


The local facilities, with their half-million systems, essentially damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, must have to do with producing business entities, not easy financial investments. It must have to do with creating genuine jobs, not elaborate calculations about the indirect development of tasks, which is now component of the regulation.


Probably that is among the reasons why it has actually failed year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of intermediaries, both public and private. The program has even more than its share of scandals, which I will enter into later on if any person is interested.


This is an agency that enjoys to say yes to candidates, yet as the table in my statement reveals, USCIS officers have far more problem with EB-5 applications than others. I believe that is something that nobody has truly discussed a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals that can not get them otherwise and to individuals whose organized investment is in fact much less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Let me broaden on among my monitorings.


My price quote based upon the capitalists' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not supply the kind of data that we could utilize on this.


For every $100 of raised international financial investment that year, the EB program added one cent. Under a a lot more shaky statistical base, the first applications of would-be immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thank you for listening to me. I expect your remarks and questions. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice group.




Divine acted as Chief Advice of the United States Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which explanation he was Acting Supervisor, and after that Performing Replacement Supervisor. He has worked extensively with the EB-5 program in private technique. He was check here chosen, as I understand, vice president of the Association to Spend in USA, the national industry association of regional.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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, Legislator Grassley, and others.


At most, if all 10,000 slots were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the firm that oversees the program, has been making the policies more clear and the procedures a lot more sensible and clear for the individuals who are organizing investments and for the financiers who are spending, more people have actually agreed and able to place initiative and money into the procedure to locate excellent jobs and establish them, and afterwards much more investors have been prepared to spend their cash and take the danger and utilize the cash to create the tasks that is the factor of the program.

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These jobs do not linger forever, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that more information they are unwinding their scrutiny, and, as a matter of fact, they prepare to reject applications that are not certifying. 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 established in 1992, and ever since that program has actually been extended 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 expiry in September.


The procedure takes a great while to function up a project and after that to get the financiers authorized. And they do not want their cash streaming via till they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the advancement of tasks.

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I want to clarify that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. It just is a reality that the majority of the local facilities that are pooling financial investments have actually set those instead of high joblessness or in country locations where fifty percent- million-dollar investments are permitted, and that makes good sense.