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The program is put in a very strange and non-helpful bureaucratic location for the stimulation of worldwide financial investment in the United States. Second, its range is all incorrect. We are providing away way too much for also little of a financial investment. Even more, increasing equity capital fifty percent a million bucks a tranche is, to say the least, ineffective.

The regional centers, with their half-million schemes, basically undercut the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to be about developing company entities, not passive investments. It ought to be regarding creating actual tasks, not elaborate estimations about the indirect creation of tasks, which is currently part of the regulation.

Maybe that is just one of the reasons it has failed time after time to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will certainly enter into later on if anybody is interested.

This is a company that likes to claim yes to applicants, however as the table in my testimony shows, USCIS officers have a lot a lot more trouble with EB-5 applications than others. I think that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and completely reason

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Seventh, in this program visas most likely to people that can not get them differently and to people whose planned financial investment is really less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Allow me broaden on one of my monitorings.

My estimate based upon the capitalists' environment-friendly card applications filed 2 years after the initial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not give the kind of information that we could utilize on this.

For every $100 of boosted international financial investment that year, the EB program added one dime. Under a far more shaky analytical base, the initial applications of prospective immigrant capitalists, USCIS is informing reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for listening to me. I look ahead to your comments and questions. [The prepared declaration of David North looks like an entry for the record.] 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 group.


Divine worked as Chief Advice of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and then Acting Replacement Supervisor. He has functioned extensively with the EB-5 program secretive method. He was elected, as I recognize, vice head of state of the Association to Purchase United States, the nationwide industry association of regional centers.

Divine, we are delighted to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.

At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, however it is expanding and getting towards that. Specifically as USCIS, the company that looks after the program, has been making the rules more clear and the procedures much more logical and clear for the people that are arranging financial investments and for the investors who are spending, more individuals have been willing and able to place initiative and cash right into the process to locate great jobs and establish them, and then more capitalists have actually agreed to spend their cash and take the danger and utilize the cash to create the work that is the point of the program.

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These tasks do not wait around for life, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, in reality, they are all set to refute applications that are not qualifying. And they do so, as was stated

The regional facility component of the program is not. It is component of an appropriations costs that was enacted in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.

The process takes a good while to develop a task and afterwards to obtain the capitalists approved. And they do not desire their cash streaming via until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the development of projects.

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I want to clear up that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 regulation that belongs to the code. It simply is a reality that the majority of the regional facilities that are merging investments have website actually set those instead of high unemployment or in country locations where half- million-dollar investments are allowed, which makes sense.

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