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First, the program is put in a really strange and non-helpful bureaucratic place for the excitement of worldwide financial investment in the United States. Second, its scale is all wrong. We are handing out excessive for too little of an investment. Even more, increasing endeavor capital half a million dollars a tranche is, to state the least, ineffective.


The local centers, with their half-million schemes, basically damaged the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must be regarding developing service entities, not passive investments. It needs to have to do with producing real work, not specify computations about the indirect production of jobs, which is currently component of the legislation.


Possibly that is one of the factors why it has failed year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also loaded with intermediaries, both public and personal. The program has greater than its share of rumors, which I will get right into later if anybody is interested.


This is a company that loves to claim yes to applicants, yet as the table in my statement reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I assume that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high prices of inner denials in this program and completely reason

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Seventh, in this program visas most likely to people who could not get them otherwise and to individuals whose scheduled financial investment is in fact less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me broaden on one of my observations.


My quote based on the financiers' permit applications submitted 2 years after the very first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not give the type of data that we might use on this.


So for each $100 of raised international financial investment that year, the EB program added one penny. Under a much a lot more wobbly statistical base, the initial applications of would-be immigrant investors, USCIS More Info is informing reporters that the level of 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 anticipate your comments and inquiries. [The prepared statement of David North shows up as an entry for the record.] 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 company's immigration method team.




Divine acted as Chief Guidance of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. He has functioned thoroughly with the EB-5 program in personal practice. He was chosen, as I recognize, vice head of state of the Association to Invest in United States, the national industry organization of regional.


Divine, we are pleased to have you here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were utilized, it would be 1 percent of the migration each year to the USA. It is not near that yet, but it is expanding and getting towards that. Especially as USCIS, the company that oversees the program, has been making the rules more clear and the processes a lot more reasonable and internet clear for individuals that are arranging financial investments and for the capitalists who are spending, more individuals have agreed and able to place initiative and money right into the procedure to find excellent jobs and create them, and then extra financiers have actually wanted to spend their cash and take the risk and make use of the cash to create the tasks that is the factor of the program.

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These projects do not linger permanently, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they are ready to deny applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It belongs to an appropriations bill that was established in 1992, and since then that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes an excellent while to work up a project and afterwards to obtain the financiers approved. And they do not desire their money streaming through till they have been authorized. And the specter of the expiry of this Regional Center Program in September is already inhibiting the development of jobs.

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I would certainly such as to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 regulation that becomes part of the code. It simply is a fact more information that many of the regional centers that are merging investments have set those in places of high unemployment or in rural areas where fifty percent- million-dollar investments are permitted, and that makes good sense.