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First, the program is put in a very strange and non-helpful bureaucratic place for the excitement of international investment in the USA. Second, its scale is all incorrect. We are giving away way too much for as well little of a financial investment. Even more, elevating equity capital half a million dollars a tranche is, to say the least, inefficient.


The regional centers, with their half-million schemes, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to be about developing company entities, not easy investments. It needs to have to do with creating genuine jobs, not elaborate estimations about the indirect development of jobs, which is currently component of the legislation.


Probably that is one of the reasons it has actually stopped working year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with middlemen, both public and personal. The program has even more than its share of scandals, which I will certainly get involved in later on if any person is interested.


This is a company that enjoys to say yes to applicants, yet as the table in my testimony shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually actually spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely reason

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Seventh, in this program visas go to people who could not get them differently and to people whose planned investment is really less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Let me increase on one of my observations.


My estimate based upon the investors' 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 concerning $191 million verified-- that is my estimate. USCIS does not provide the sort of information that we might use on this.


For every $100 of boosted foreign financial investment that year, the EB program contributed one dime. Under a far more unsteady statistical base, the first applications of potential immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I anticipate your remarks and questions. [The prepared statement of David North looks like an entry for the document.] 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 team.




Divine functioned as Chief Advice of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program in exclusive technique. He was elected, as I recognize, vice president of the Association to Buy United States, the national sector association of local 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, Legislator Grassley, and others.


At many, if all 10,000 slots were used, it would be 1 percent of the migration every year to the USA. It is not near that yet, but it is expanding and obtaining towards that. Specifically as USCIS, the company that looks after the program, has actually been making the policies clearer and the processes extra rational and clear for the individuals that are organizing investments and for the capitalists that are investing, more people have actually agreed and able to put initiative and cash right into the process to discover great tasks and develop them, and afterwards more capitalists have been prepared to invest their cash and take the threat and make use of the cash to create the jobs that is the point of the program.

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These jobs do not wait about permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, as a matter of fact, they are prepared to refute applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It is part of an appropriations expense that was enacted in EB5 Regional Center Program 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to function up a task and after that to get the capitalists accepted. And they do not desire their cash streaming via till they have been approved. And the specter of the expiry of this Regional Center Program in September is already dissuading the advancement of projects.

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I want 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 feature of the routine EB-5 legislation that is component of the code. It simply is a fact that most of the local facilities that are pooling investments have actually established those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, and that makes good sense.