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First, the program is placed in a very odd and non-helpful administrative location for the stimulation of international financial investment in the United States. Second, its scale is all incorrect. We are giving away also much for also small of a financial investment. Additionally, elevating venture resources fifty percent a million bucks a tranche is, to say the least, inefficient.


The local facilities, with their half-million schemes, basically damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to be concerning producing company entities, not easy investments. It must have to do with developing real work, not elaborate estimations regarding the indirect development of work, which is now part of the legislation.


Maybe that is just one of the reasons it has fallen short time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with intermediaries, both public and private. The program has more than its share of detractions, which I will obtain into later on if any person is interested.


This is a firm that likes to say yes to applicants, but as the table in my testament reveals, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that no one has actually really discussed much. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently reason

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Seventh, in this program visas most likely to people who might not get them any other way and to individuals whose organized financial investment is in fact less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Let me increase on one of my observations.


My quote based on the financiers' copyright applications submitted 2 years after the first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not provide the type of information that we might use on this.


For every $100 of boosted international financial investment that year, the EB program added one dime. Under a far more unsteady analytical base, the first applications of would-be immigrant capitalists, USCIS is informing reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I expect your comments and inquiries. [The prepared declaration of David North appears as an entry for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice group.




Divine acted as Principal Advice of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Director. He has worked extensively with the EB-5 program in private method. He was elected, as I comprehend, vice head of state of the Association to Invest in U.S.A., the national industry organization of local.


Divine, we are thrilled to have you below. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration yearly to the United States. It website is not near that yet, yet it is growing and getting towards that. Particularly as USCIS, the company that manages the program, has been making the guidelines clearer and the procedures a lot more rational and clear for individuals who are arranging financial investments and for the financiers that are spending, more individuals have been willing and able to put effort and money right into the procedure to locate great tasks and create them, and then much more capitalists have agreed to invest their cash and take the danger and make use of the money to produce the work that is the point of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, 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 center part of the program is not. It belongs to an appropriations bill that was established in 1992, and because then that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes a great while to develop a project and afterwards to get the capitalists approved. And they do not want their cash streaming through up until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of projects.

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I wish to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 legislation that belongs to the code. It simply is a truth that most of the regional facilities that are merging financial investments have established those instead of high unemployment or in rural areas where half- million-dollar financial investments are enabled, and that makes feeling.