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Initially, the program is positioned in a very strange and non-helpful governmental location for the stimulation of worldwide financial investment in the USA. Second, its scale is all incorrect. We are distributing too much for also tiny of a financial investment. Additionally, increasing venture capital half a million bucks a tranche is, to state the least, ineffective.


The local centers, with their half-million plans, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, should have to do with producing company entities, not passive financial investments. It ought to have to do with producing real work, not elaborate calculations concerning the indirect production of work, which is currently part of the legislation.


Probably that is among the factors why it has failed year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also filled with middlemen, both public and personal. The program has greater than its share of rumors, which I will certainly get involved in later on if anybody is interested.


This is a company that loves to say yes to candidates, yet as the table in my statement reveals, USCIS policemans have a lot a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever reason

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Seventh, in this program visas go to individuals that could not obtain them any type of other method and to people whose planned investment is actually much less, according to the Federal Get, than the average mean total assets of all American families in 2007. Let me broaden on one of my observations.


My price quote based on the capitalists' permit applications filed 2 years after the initial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not supply the kind of data that we might use on this.


So for every single $100 of raised foreign financial investment that year, the EB program contributed one penny. Under a far more shaky statistical base, the initial applications of would-be immigrant capitalists, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for listening to me. I look onward to your comments and concerns. [The prepared statement of David North appears as a submission weblink for the record.] Chairman Leahy. Thanks. Our next 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 group.




Divine functioned as Chief Guidance of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program in personal practice. He was chosen, as I comprehend, vice president of the Organization to Invest in U.S.A., the national industry organization of local.


Divine, we are happy to have you right here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were made use of, it would be 1 percent of the migration every year to the United States. It is not near that yet, however it is growing and getting toward that. Especially as USCIS, the agency that oversees the program, has actually been making the regulations clearer and the processes a lot more rational and clear for the people that are organizing financial investments and for the financiers that are spending, more individuals have actually been ready and able to put initiative and money into the process to discover excellent projects and establish them, and afterwards much more financiers have actually agreed to invest their cash and take the risk and make use of the cash to create his comment is here the tasks that is the point of the program.

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These jobs do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, as a matter of go to this site fact, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It belongs to an appropriations expense that was passed in 1992, and given that then that program has been expanded 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to develop a project and afterwards to obtain the financiers accepted. And they do not want their money streaming through up until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already preventing the advancement of tasks.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 law that becomes part of the code. It simply is a fact that the majority of the local centers that are pooling investments have actually set those in locations of high joblessness or in backwoods where fifty percent- million-dollar investments are permitted, which makes good sense.