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Initially, the program is put in an extremely strange and non-helpful bureaucratic area for the stimulation of international investment in the United States. Second, its range is all incorrect. We are providing away excessive for as well small of an investment. Further, increasing venture funding fifty percent a million bucks a tranche is, to say the least, inefficient.


The local facilities, with their half-million plans, essentially damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with developing business entities, not easy financial investments. It must be about developing genuine work, not specify computations regarding the indirect development of tasks, which is now component of the regulations.


Maybe that is just one of the factors why it has fallen short time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with middlemen, both public and private. The program has more than its share of detractions, which I will certainly get involved in later if anyone is interested.


This is a company that loves to state yes to candidates, yet as the table in my testimony reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that nobody has really talked around a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for great reason

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Seventh, in this program visas most likely to individuals that could not get them otherwise and to individuals whose planned investment is in fact less, according to the Federal Reserve, than the ordinary mean internet well worth of all American family members in 2007. Allow me expand on among my observations.


My quote based upon the capitalists' copyright applications filed 2 years after the initial financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not offer the type of data that we might utilize on this.


So for every $100 of raised international financial investment that year, the EB program contributed one cent. Under a much a lot more shaky analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I expect 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 a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method team.




Divine served as Principal Counsel of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Performing Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice head of state of the Organization to Purchase USA, the national industry organization of regional facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is expanding and getting towards that. Especially as USCIS, the agency that supervises the program, has actually been making the rules clearer and the procedures a lot more reasonable and clear for the individuals who are arranging financial investments and for the investors who are investing, even more individuals have actually wanted and able to put effort and cash into the process to find good tasks and develop them, and after that extra investors have been eager to spend their money and take the risk and use the cash 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 trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, actually, they are ready to reject applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It belongs to an appropriations costs that was established in 1992, and given that then that program has been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiration in September.


The process takes a good while to develop a task and after that to obtain the capitalists approved. And they do not want their cash streaming with until they have been authorized. And the specter of the expiry of this Regional Center Program in September is currently discouraging the growth of projects.

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I would certainly like to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The idea of half a million or a million is more info a function of the normal EB-5 legislation that is component of the code. It just is a truth that the majority of the regional centers that are merging financial investments have set those instead of high unemployment or in rural areas where fifty percent- million-dollar financial investments are permitted, which makes sense.