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First, the program is positioned in a really weird and non-helpful administrative area for the excitement of international investment in the United States. Second, its scale is all wrong. We are offering away also much for as well small of an investment. Better, elevating financial backing half a million dollars a tranche is, to say the least, ineffective.

The local facilities, with their half-million plans, essentially undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to have to do with producing service entities, not easy financial investments. It ought to have to do with producing actual tasks, not clarify estimations regarding the indirect production of tasks, which is now part of the regulations.


Perhaps that is among the reasons why it has actually fallen short every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter into later on if anybody is interested.


This is an agency that loves to say yes to candidates, however as the table in my statement reveals, USCIS policemans have far more trouble with EB-5 applications than others. I assume that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently reason

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Seventh, in this program visas most likely to people who might not obtain them otherwise and to people whose scheduled investment is in fact much less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Let me broaden on one of my monitorings.


My price quote based on the capitalists' environment-friendly card applications filed 2 years after the very first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not supply the type of data that we might utilize on this.


For every $100 of raised international financial investment that year, the EB program added one dime. Under a much a lot more wobbly statistical base, the preliminary applications of potential immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and concerns. [The prepared declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. 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 migration practice group.

Divine functioned as Chief Counsel of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive method. He was elected, as I understand, vice president of the Association to Spend in United States, the nationwide sector organization of local.


Divine, we are thrilled to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, however it is growing and getting towards that. Especially as USCIS, the firm that manages the program, has actually been making the policies more clear and the procedures more sensible and clear for individuals who are arranging investments and for the investors who are spending, more people have actually wanted and able to place effort and money into the process to find great tasks and develop them, and afterwards much more investors have actually been prepared to invest 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 permanently, and USCIS comprehends that and are attempting to speed up the program, speed 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 refute applications that are not certifying. And they do so, as was pointed out

The regional facility part of the program is not. It belongs to an appropriations costs that was established in 1992, and ever since that program has actually been prolonged 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 expiry in September.


The procedure takes an excellent while to function up a job and then to obtain the investors authorized. And they do not desire their cash flowing with until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the development of tasks.

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I would like 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 normal EB-5 law that is part of the code. It simply is a fact that the majority of the regional facilities that are pooling here financial investments have established those instead of high unemployment or in rural areas where half- million-dollar investments are allowed, and that makes good sense.