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First, the program is put in a really odd and non-helpful governmental area for the stimulation of international investment in the USA. Second, its scale is all wrong. We are handing out as well much for as well little of an investment. Better, raising equity capital half a million bucks a tranche is, to state the least, ineffective.


The local centers, with their half-million schemes, basically undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should have to do with creating business entities, not passive investments. It needs to have to do with developing actual tasks, not elaborate computations regarding the indirect production of jobs, which is now part of the legislation.


Possibly that is one of the reasons that it has stopped working year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will enter into later if anybody is interested.


This is a firm that enjoys to say yes to candidates, but as the table in my statement shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high prices of interior denials in this program and for great factor

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Seventh, in this program visas go to individuals who could not get them otherwise and to individuals whose scheduled financial investment is really much less, according to the Federal Reserve, than the typical mean internet well worth of all American households in 2007. Let me expand on among my monitorings.


My estimate based upon the capitalists' permit applications submitted 2 years after the very first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not offer the kind of data that we could make use of on this.


So for every single $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a a lot more shaky analytical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and questions. [The prepared declaration of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice team.




Divine acted as Chief Advice of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. He has functioned thoroughly with the EB-5 program in personal method. He was chosen, as I recognize, vice president of the Association to Spend in USA, the national market organization of local centers.


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, Senator Grassley, and others.


At many, if all 10,000 slots were used, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and getting toward that. Especially as USCIS, the company that oversees the program, has actually been making the rules more clear and the procedures extra reasonable and clear for individuals who are arranging financial investments and for the financiers that are investing, more people have actually been eager and able to put initiative and money into the process to find good projects and establish them, and afterwards extra capitalists have actually agreed to spend their money and take the danger and use the money to produce the jobs that is the factor of the program.

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These jobs do not linger forever, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they prepare to deny click over here applications that are not certifying. And they do so, as was stated


The local center component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and go to these guys given that then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to work up a task and then to obtain the financiers approved. And they do not desire their cash moving with until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of tasks.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 regulation that is part find more info of the code. It simply is a reality that a lot of the local facilities that are merging investments have set those instead of high joblessness or in country locations where fifty percent- million-dollar investments are permitted, which makes sense.