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Initially, the program is positioned in a very odd and non-helpful bureaucratic area for the stimulation of global financial investment in the USA. Second, its scale is all incorrect. We are handing out way too much for too small of a financial investment. Better, raising equity capital fifty percent a million bucks a tranche is, to say the least, ineffective.

The regional centers, with their half-million plans, basically damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must have to do with developing business entities, not easy investments. It should be concerning developing genuine work, not specify computations concerning the indirect creation of tasks, which is now part of the regulation.


Probably that is just one of the factors why it has actually failed every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also filled up with middlemen, both public and personal. The program has more than its share of detractions, which I will enter later if any person is interested.


This is a firm that loves to state yes to candidates, yet as the table in my testament shows, USCIS police officers have far more trouble with EB-5 applications than others. I think that is something that nobody has actually truly spoken about much. EB5 Regional Center Program. There are high prices of internal denials in this program and for good reason

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Seventh, in this program visas most likely to individuals that could not obtain them differently and to individuals whose scheduled investment is actually much less, according to the Federal Book, than the average mean internet worth of all American family members in 2007. Allow me broaden on among my monitorings.


My estimate based upon the financiers' copyright applications filed 2 years after the very first financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not offer the sort of data that we can make use of on this.


So for every $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a far more wobbly statistical base, the initial applications of potential immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was look at this website about $1.2 billion. Allow us accept 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 shows up as a submission 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 migration practice team.

Divine worked as Principal Guidance of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Replacement Director. He has actually worked extensively with the EB-5 program in personal technique. He was elected, as I recognize, vice president of the Organization to Spend in U.S.A., the national market organization of regional.


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


At a lot of, if all 10,000 slots were utilized, it would be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and obtaining toward that. Particularly as USCIS, the firm that looks websites after the program, has actually been making the guidelines clearer and the processes much more sensible and clear for the individuals that are organizing investments and for the investors who are investing, more individuals have actually agreed and able to place initiative and money right into the process to find good projects and create them, and then more capitalists have actually agreed to invest their money and take the risk and use the money to create the tasks that is the point of the program.

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These jobs do not wait around for life, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was pointed out

The regional facility component my site of the program is not. It belongs to an appropriations bill that was established in 1992, and given that then that program has actually been expanded 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 process takes an excellent while to function up a job and after that to get the investors accepted. And they do not want their money streaming via till they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already inhibiting the development of tasks.

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I want to make clear that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 legislation that belongs to the code. It simply is a fact that the majority of the regional centers that are pooling financial investments have actually established those in locations of high unemployment or in rural locations where half- million-dollar financial investments are allowed, which makes good sense.