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First, the program is placed in a very strange and non-helpful bureaucratic area for the excitement of worldwide investment in the USA. Second, its range is all incorrect. We are providing away way too much for also tiny of a financial investment. Further, increasing equity capital fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional facilities, with their half-million systems, essentially damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, ought to be concerning producing business entities, not passive financial investments. It must have to do with developing genuine tasks, not specify estimations regarding the indirect creation of work, which is currently component of the regulations.


Probably that is among the reasons why it has stopped working year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also full of middlemen, both public and exclusive. The program has even more than its share of scandals, which I will certainly get involved in later on if anyone is interested.


This is a company that enjoys to say yes to applicants, yet as the table in my testament shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually actually spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever reason

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Seventh, in this program visas go to individuals who could not get them otherwise and to individuals whose organized investment is actually less, according to the Federal Get, than the ordinary mean internet well worth of all American family members in 2007. Let me increase on one of my monitorings.


My quote based upon the investors' permit applications submitted 2 years after the very first investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not offer the kind of information that we might use on this.


For every $100 of raised international investment that year, the EB program contributed one cent. Under a much extra shaky statistical base, the first applications of potential immigrant capitalists, USCIS is telling reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thanks for listening to me. I look ahead to your remarks and concerns. [The prepared declaration of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He get redirected here is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method team.




Divine functioned as Principal Advice of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Director. He has actually worked thoroughly with the EB-5 program in personal method. He was chosen, as I recognize, vice president of the Association to Purchase USA, the national market association of regional facilities.


Divine, we are happy to have you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, 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. Thanks for having me.


At many, 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 getting toward that. Especially as USCIS, the agency that manages the program, has actually been making the rules clearer and the procedures more reasonable and clear for the individuals who are arranging financial investments and for the investors who are spending, even more individuals have been prepared and able to put initiative and cash right into the procedure to locate excellent projects and establish them, and afterwards a lot more capitalists have wanted to invest their money and take the risk and use the cash to create the jobs that is the factor of the program.

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These projects do not wait about permanently, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, in truth, they prepare to read more refute applications that are not qualifying. And they do so, as was mentioned


The regional center component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to develop a job and after that to obtain the investors authorized. And they do not want their cash moving through until they have been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the development of tasks.

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I want to make clear that the Regional Facility Program is not the exact same as read this article the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It just is a fact that many of the regional facilities that are merging investments have actually established those in areas of high joblessness or in backwoods where fifty percent- million-dollar investments are permitted, and that makes good sense.