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First, the program is placed in a really weird and non-helpful bureaucratic place for the stimulation of global investment in the United States. Second, its range is all incorrect. We are providing away way too much for as well little of an investment. Even more, raising financial backing half a million bucks a tranche is, to say the least, inefficient.


The regional facilities, with their half-million schemes, essentially damaged the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, should be regarding creating service entities, not passive investments. It needs to be regarding creating genuine tasks, not specify computations about the indirect production of work, which is now part of the regulations.


Possibly that is among the reasons that it has failed year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled with middlemen, both public and personal. The program has greater than its share of rumors, which I will certainly get involved in later if anyone is interested.


This is an agency that loves to claim yes to candidates, however as the table in my testimony shows, USCIS policemans have a lot a lot more trouble with EB-5 applications than others. I think that is something that nobody has really chatted around a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas most likely to people who might not obtain them differently and to people whose scheduled investment is really much less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Allow me broaden on one of my monitorings.


My estimate based upon the investors' eco-friendly card applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not give the kind of data that we can use on this.


So for each $100 of increased international financial investment that year, the EB program added one penny. Under additional hints a far more shaky statistical base, the initial applications of would-be immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thanks for listening to me. I anticipate your remarks and inquiries. [The prepared declaration of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert my latest blog post Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method group.




Divine served as Chief Counsel of the USA Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has worked extensively with the EB-5 program in exclusive practice. He was chosen, as I recognize, vice head of state of the Association to Spend in U.S.A., the nationwide sector association of regional.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, 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 utilized, it would be 1 percent of the immigration every year to the United States. It is not near that yet, but it is growing and getting towards that. Especially as USCIS, the agency that looks after the program, has been making the regulations more clear and the procedures much more reasonable and have a peek at this site clear for individuals who are arranging financial investments and for the capitalists who are investing, even more people have agreed and able to place effort and money into the process to find great tasks and develop them, and after that extra capitalists have actually wanted to invest their cash and take the risk and use the money to produce the tasks that is the point of the program.

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These tasks do not wait about for life, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, in fact, they are prepared to refute applications that are not qualifying. And they do so, as was stated


The regional center component of the program is not. It is component of an appropriations bill that was passed in 1992, and because then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to develop a job and afterwards to obtain the investors accepted. And they do not desire their cash flowing with till they have been approved. And the specter of the expiration of this Regional Facility Program in September is already discouraging the advancement of tasks.

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I want to make clear that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 legislation that becomes part of the code. It simply is a reality that most of the regional facilities that are merging financial investments have actually set those in places of high unemployment or in rural areas where fifty percent- million-dollar financial investments are enabled, which makes good sense.