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Initially, the program is positioned in a very weird and non-helpful administrative area for the stimulation of global investment in the United States. Second, its range is all wrong. We are distributing excessive for as well tiny of a financial investment. Even more, elevating venture capital half a million dollars a tranche is, to state the least, inefficient.


The regional facilities, with their half-million plans, essentially undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should be concerning producing company entities, not passive financial investments. It needs to have to do with creating actual jobs, not specify estimations regarding the indirect production of tasks, which is now component of the regulations.


Perhaps that is just one of the factors why it has fallen short year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of intermediaries, both public and private. The program has even more than its share of scandals, which I will certainly enter later if any person is interested.


This is a company that enjoys to state yes to applicants, yet as the table in my testimony reveals, USCIS police officers have much extra trouble with EB-5 applications than others. I believe that is something that nobody has actually really spoken about much. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas go to individuals who might not obtain them differently and to people whose organized financial investment is actually less, according to the Federal Reserve, than the average mean net worth of all American families in 2007. Allow me broaden on one of my monitorings.


My quote based on the financiers' eco-friendly card applications filed 2 years after the very first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not offer the kind of information that we might utilize on this.


For every $100 of enhanced international financial investment that year, the EB program added one dime. Under a far more unsteady statistical base, the first applications of potential immigrant financiers, USCIS is telling journalists 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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Thanks for listening to me. I eagerly anticipate your remarks and concerns. [The ready declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. 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 migration practice group.




Divine functioned as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has worked thoroughly with the EB-5 program in exclusive technique. He was chosen, as I comprehend, vice head of state of the Organization to Spend in USA, the nationwide market association of regional facilities.


DECLARATION 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 a lot of, if all 10,000 slots were made use of, it would be 1 percent of the migration annually to the USA. It is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the agency that looks after the program, has actually been making the guidelines more clear and the procedures a lot more rational and clear for individuals who are arranging investments and for the financiers that are investing, more individuals have agreed and able to put effort and money right into the process to locate excellent projects and establish them, and then extra investors have been prepared to spend their cash and take the threat and use the cash to create the jobs that is the point of the program.

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These jobs do not wait about for life, and USCIS comprehends that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, in truth, they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The regional center part of the program is not. It belongs to website an appropriations expense that was enacted in 1992, and ever since that program has been prolonged five 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 an excellent while to work up a job and after that to obtain the financiers accepted. And they do not want their cash streaming via until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the growth of jobs.

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I would certainly such as to clear up that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 law that belongs to the code. It simply is a fact that a lot of the regional centers that are merging investments have set those in places of high unemployment or in country areas where fifty percent- million-dollar investments are allowed, which makes good sense.