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First, the program is positioned in a really strange and non-helpful administrative area for the stimulation of international financial investment in the USA. Second, its range is all wrong. We are offering away way too much for as well small of an investment. Better, raising financial backing half a million dollars a tranche is, to state the least, inefficient.


The regional centers, with their half-million systems, essentially undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to have to do with creating organization entities, not easy financial investments. It needs to be concerning creating real work, not specify computations concerning the indirect production of work, which is now part of the legislation.


Maybe that is among the reasons that it has actually failed every year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well full of intermediaries, both public and private. The program has more than its share of rumors, which I will get involved in later on if anyone is interested.


This is a company that enjoys to say yes to candidates, yet as the table in my testament shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually really spoken around much. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to individuals who can not get them differently and to people whose organized investment is actually much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Allow me increase on one of my monitorings.


My price quote based on the capitalists' permit applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not offer the type of data that we could utilize on this.


So for every $100 of raised international financial investment that year, the EB program added one cent. Under a a lot more wobbly analytical base, the first applications of prospective immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. from this source I look forward to your comments and concerns. [The prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique group.




Divine worked as Chief Advise of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Director. He has worked extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice president of the Organization to Invest in USA, the nationwide market organization of local.


Divine, we are delighted to have you right here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were used, it would be 1 percent of the migration annually to the United States. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the company that manages the program, has actually been making the guidelines more clear and the processes more logical and clear for the people who are arranging investments and for the financiers who are spending, even more individuals have agreed and able to put effort and money into the procedure to locate excellent projects and create them, and then extra financiers have actually agreed to spend their cash and take the risk and make use of the cash to produce the jobs that is the point of the program.

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These tasks do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, in truth, they are prepared to refute applications that are not certifying. And they do so, as was mentioned


The local facility part of the program is not. It additional info belongs to an appropriations costs that was established in 1992, and given that then that program has been expanded 5 explanation times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiration in September.


The process takes a great while to work up a project and after that to get the financiers authorized. And they do not want their cash moving via until they have been authorized. And the specter of the expiry of this Regional Center Program in September is already dissuading the advancement of tasks.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 law that is part of the code. It just is a reality that a lot of the regional centers that are pooling financial investments have actually established those in locations of high unemployment or in backwoods where half- million-dollar investments are enabled, and that makes sense.