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The program is put in a really odd and non-helpful bureaucratic area for the stimulation of international investment in the United States. Second, its range is all wrong. We are handing out also much for also small of an investment. Further, raising venture resources half a million dollars a tranche is, to state the least, ineffective.


The local centers, with their half-million systems, essentially undercut 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, must have to do with producing organization entities, not easy financial investments. It should have to do with producing actual tasks, not elaborate computations regarding the indirect creation of jobs, which is now component of the legislation.


Maybe that is one of the reasons why it has fallen short every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too filled with intermediaries, both public and personal. The program has more than its share of scandals, which I will certainly enter later if anyone is interested.


This is a firm that loves to state yes to candidates, but as the table in my testament shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has truly spoken around much. EB5 Regional Center Program. There are high rates of inner denials in this program and completely factor

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Seventh, in this program visas go to individuals who can not obtain them differently and to people whose planned investment is really less, according to the Federal Reserve, than the average mean internet well worth of all American households in 2007. Let me expand on one of my observations.


My estimate based on the investors' copyright applications filed 2 years after the very first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not supply the sort of data that we could make use of on this.


So for every $100 of enhanced foreign financial investment that year, the EB program added one dime. Under a much extra unsteady statistical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I look ahead to your remarks and questions. [The prepared declaration of David North looks like an EB5 Regional Center Program entry for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice team.




Divine offered as Principal Advice of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Director. He has actually worked extensively with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state of the Association to Invest in U.S.A., the national market organization of regional.


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


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and getting towards that. Specifically as USCIS, the company that supervises the program, has actually been making the rules more clear and the processes a lot more rational and clear for individuals that are organizing financial investments and for the capitalists who are spending, even more people have been prepared and able to put initiative and money right into the process to discover excellent tasks and develop them, and after that more financiers have actually been willing to spend their cash and take the threat and make use of the cash to develop the work that is the factor of the program.

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These projects do not wait around permanently, and USCIS comprehends that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was stated


The regional facility part of the program is not. It becomes part of an appropriations expense that was passed 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 currently and not nearer to the day of expiry in September.


The process takes an excellent while to develop a job and afterwards to obtain the investors authorized. And they do not desire their money flowing through till they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is currently dissuading the growth of tasks.

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I want to clear up that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 legislation that becomes part of the code. It simply is a truth that a lot of the regional facilities that are merging investments have actually established those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, and that makes sense.