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The program is positioned in a very strange and non-helpful bureaucratic area for the stimulation of global investment in the United States. Second, its range is all incorrect. We are distributing as well much for as well small of an investment. Better, increasing financial backing half a million dollars a tranche is, to state the least, inefficient.


The regional centers, with their half-million schemes, essentially undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, ought to have to do with developing organization entities, not easy financial investments. It must have to do with developing actual work, not specify estimations concerning the indirect production of work, which is currently component of the regulation.


Maybe that is just one of the reasons it has failed every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will get involved in later if any person is interested.


This is a firm that loves to state yes to applicants, but as the table in my testament reveals, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has really discussed a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently factor

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Seventh, in this program visas go to individuals that can not obtain them differently and to people whose organized investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Let me increase on one of my monitorings.


My quote based upon the financiers' environment-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not provide the type of information that we can use on this.


So for every $100 of boosted foreign financial investment that year, the EB program added one dime. Under a much more unsteady statistical base, the initial applications of would-be immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. I eagerly anticipate your comments and concerns. [The ready statement of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of index Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique team.




Divine worked as Principal Advice of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Director. He has actually functioned thoroughly with the EB-5 Get More Information program secretive technique. He was elected, as I understand, vice head of state of the Organization to Invest in United States, the nationwide market association of local.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, but it is growing and getting towards that. Specifically as USCIS, the agency that manages the program, has actually been making the guidelines clearer and the procedures more logical and clear for individuals that are arranging investments and for the capitalists that are investing, more individuals have actually been eager and able to place initiative and money right into the process to find good jobs and establish them, and afterwards much more financiers have actually been prepared to spend their cash and take the threat and use the cash to create the jobs that is the factor of the program.

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These jobs do not linger for life, and USCIS understands that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The local center part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it check my reference to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes a great while to develop a task and after that to get the investors approved. And they do not desire their cash streaming via until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already preventing the development of tasks.

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I want to clarify that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 legislation that belongs to the code. It just is a fact that most of the local facilities that are merging investments have set those instead of high joblessness or in country areas where half- million-dollar investments are allowed, which makes feeling.