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The program is positioned in an extremely strange and non-helpful administrative location for the stimulation of global investment in the United States. Second, its range is all incorrect. We are handing out also much for as well small of an investment. Better, increasing equity capital fifty percent a million bucks a tranche is, to state the least, ineffective.


The local centers, with their half-million systems, essentially undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should have to do with creating service entities, not passive financial investments. It ought to be about creating real work, not elaborate calculations about the indirect development of jobs, which is currently component of the regulations.


Maybe that is one of the reasons why it has actually fallen short time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well full of intermediaries, both public and personal. The program has even more than its share of scandals, which I will certainly enter into later on if anybody is interested.


This is a firm that likes to claim yes to applicants, yet as the table in my statement shows, USCIS police officers have a lot more problem with EB-5 applications than others. I think that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and permanently reason

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Seventh, in this program visas go to people that can not get them differently and to individuals whose scheduled investment is in fact 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 monitorings.


My price quote based upon the financiers' permit applications filed 2 years after the first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not offer the kind of data that we could use on this.


For every $100 of raised foreign financial investment that year, the EB program contributed one penny. Under a far more wobbly statistical base, the initial applications of prospective immigrant capitalists, USCIS is telling 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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Thanks for paying attention to me. I look onward to your comments and inquiries. [The prepared declaration of David North appears as a submission for the record.] 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 immigration method group.




Divine functioned as Chief Guidance of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was next page Acting Supervisor, and afterwards Acting Deputy Director. He has worked extensively with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Organization to Invest in USA, the nationwide market association of regional centers.


STATEMENT 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 the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, yet it is growing and obtaining towards that. Especially as USCIS, the agency that oversees the program, has been making the regulations clearer and the processes a lot more rational and clear for the people who are organizing investments and for the investors who are spending, more people have actually been prepared and able to put initiative and money into the process to discover great tasks and establish them, and then extra capitalists have wanted to invest their cash and take the threat and use the money to create the jobs that is the point of the program.

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These projects do not wait around forever, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does Recommended Reading not imply that they are relaxing their examination, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The try this regional facility part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and considering that then that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes a good while to function up a job and afterwards to get the financiers approved. And they do not desire their cash streaming with till they have been approved. And the specter of the expiry of this Regional Facility Program in September is already discouraging the advancement of jobs.

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I want to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 legislation that is component of the code. It simply is a truth that many of the regional facilities that are merging investments have set those instead of high joblessness or in rural areas where fifty percent- million-dollar investments are allowed, and that makes sense.