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First, the program is placed in an extremely strange and non-helpful administrative place for the excitement of worldwide investment in the United States. Second, its scale is all incorrect. We are distributing as well much for also tiny of an investment. Better, raising endeavor resources half a million dollars a tranche is, to say the least, inefficient.


The regional centers, with their half-million systems, essentially damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, need to have to do with producing company entities, not easy financial investments. It must have to do with creating real tasks, not specify calculations about the indirect creation of work, which is currently part of the legislation.


Maybe that is one of the reasons it has actually fallen short every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also full of intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will certainly get involved in later if anyone is interested.


This is a firm that likes to state yes to applicants, but as the table in my testimony reveals, USCIS officers have far more problem with EB-5 applications than others. I assume that is something that nobody has really chatted around a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently reason

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Seventh, in this program visas go to people that can not obtain them any kind of various other means and to individuals whose scheduled investment is in fact less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Let me broaden on one of my observations.


My price quote based upon the capitalists' permit applications filed 2 years after the very first investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not give the sort of information that we can use on this.


For every $100 of increased international investment that year, the EB program contributed one cent. Under a much extra wobbly analytical base, the initial applications of would-be immigrant financiers, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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




Divine offered as Chief Advise of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and then Acting Replacement Director. He has actually worked extensively with the EB-5 program in personal method. He was chosen, as I recognize, vice president of the read what he said Association to Spend in USA, the nationwide industry association of regional.


Divine, we are thrilled to have you right here. Please go on, sir. Resources DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were utilized, it would be 1 percent of the migration every year to the United States. It is not near that yet, however it is expanding and obtaining towards that. Specifically as USCIS, the agency that looks after the program, has been making the rules clearer and the processes more logical and clear for individuals who are arranging investments and for the capitalists that are spending, even more people have wanted and able to place effort and money right into the process to locate great projects and create them, and after that extra financiers have actually been prepared to spend their money and take the threat and use the cash to create the tasks that is the factor of the program.

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These projects do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, actually, they are prepared to deny applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and because then that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to function up a task and after that to get the investors authorized. And they do not want their money streaming through up until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already discouraging the development of projects.

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I would certainly such as to clear up that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 regulation that becomes part of the code. It just is a fact that the majority of the regional facilities that are merging investments have set those additional info in locations of high joblessness or in rural locations where fifty percent- million-dollar financial investments are allowed, which makes sense.