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The program is positioned in an extremely strange and non-helpful bureaucratic area for the excitement of global investment in the United States. Second, its range is all incorrect. We are distributing excessive for also little of a financial investment. Better, raising equity capital half a million bucks a tranche is, to state the least, ineffective.


The local facilities, with their half-million schemes, basically damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, ought to be regarding developing business entities, not easy financial investments. It ought to be about creating actual tasks, not specify computations regarding the indirect production of jobs, which is now part of the regulations.


Possibly that is among the reasons that it has failed every year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too full of middlemen, both public and exclusive. The program has even more than its share of rumors, which I will enter into later if any person is interested.


This is a firm that enjoys to state yes to candidates, but as the table in my testament shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually spoken about much. EB5 Regional Center Program. There are high prices of inner denials in this program and completely factor

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Seventh, in this program visas go to individuals that might not obtain them otherwise and to individuals whose scheduled investment is in fact less, according to the Federal Get, than the average mean total assets of all American households in 2007. Allow me increase on one of my observations.


My estimate based upon the investors' permit applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not provide the sort of data that we might utilize on this.


So for every $100 of boosted foreign investment that year, the EB program contributed one dime. Under a a lot more shaky analytical base, the initial applications of would-be immigrant capitalists, USCIS is telling journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for listening to me. I anticipate your remarks and inquiries. [The prepared statement of David North looks like an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice group.




Divine worked as Principal Advise of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Replacement Director. He has worked thoroughly with the EB-5 program in private practice. He was chosen, as I recognize, vice head of state of the Association to Buy United States, the national sector association of local facilities.


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


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and obtaining towards that. Specifically EB5 Regional Center Program as USCIS, the firm that manages the program, has been making the guidelines clearer and the processes more logical and clear for the individuals who are organizing financial investments and for the investors that are spending, more people have been ready and able to place initiative and money into the procedure to find great tasks and develop them, and afterwards more capitalists have agreed to spend their cash and take the threat and use the cash to produce the tasks that is the point of the program.

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These tasks do not linger for life, and USCIS comprehends that and are trying to EB5 Regional Center Program speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, as a matter of fact, they are ready to deny applications that are not certifying. And they do so, as was stated


The regional center part of the program is not. It is part of an appropriations bill that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes an excellent while to work up a task and afterwards to obtain the financiers approved. And they do not desire their cash streaming through until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already preventing the development of projects.

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I wish to clarify that the Regional Center Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 law that is part of the code. It just is a reality that many of the local facilities that are merging investments have actually set those instead of high unemployment or see here in backwoods where half- million-dollar investments are allowed, which makes good sense.