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The program is positioned in a very weird and non-helpful governmental location for the excitement of worldwide financial investment in the United States. Second, its range is all incorrect. We are handing out way too much for also little of a financial investment. Even more, elevating equity capital half a million bucks a tranche is, to say the least, inefficient.


The local facilities, with their half-million schemes, basically damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must be concerning developing company entities, not passive financial investments. It should have to do with developing real jobs, not specify computations about the indirect creation of jobs, which is currently component of the regulation.


Possibly that is just one of the reasons that it has stopped working every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also full of intermediaries, both public and private. The program has even more than its share of scandals, which I will enter into later on if anybody is interested.


This is a firm that loves to state yes to applicants, however as the table in my statement shows, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that no one has actually actually discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and forever reason

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Seventh, in this program visas go to individuals who can not get them differently and to people whose planned financial investment is in fact much less, according to the Federal Book, than the average mean web worth of all American households in 2007. Let me broaden on among my monitorings.


My estimate based upon the capitalists' environment-friendly card applications submitted 2 years after the initial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not offer the kind of data that we might use on this.


So for every single $100 of boosted international financial investment that year, the EB program added one penny. Under a much more unsteady analytical base, the initial applications of would-be immigrant investors, USCIS is informing journalists that the level of 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 visit the site expect your comments and concerns. [The ready declaration of David North looks like a submission for the record.] 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 firm's migration technique team.




Divine acted as Chief Guidance of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Director. He has functioned thoroughly with the EB-5 program in exclusive practice. He was elected, as I comprehend, vice head of state of the Organization to Spend in U.S.A., the nationwide market association of local.


Divine, we are pleased to have you here. Please proceed, sir. DECLARATION OF ROBERT click over here now 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, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, yet it is expanding and getting toward that. Especially as USCIS, the company that manages the program, has actually been making the regulations more clear and the procedures a lot more logical and clear for individuals that are arranging investments and for the financiers that are investing, more individuals have agreed and able to place effort and cash into the process to discover great jobs and establish them, and afterwards extra capitalists have wanted to spend their cash and take the danger and use the money to develop the jobs that is the point of the program.

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These projects do not wait around permanently, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was pointed read the full info here out


The local facility part of the program is not. It is component of an appropriations costs that was established in 1992, and because then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to work up a task and afterwards to obtain the financiers authorized. And they do not want their cash moving with till they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently preventing the advancement of projects.

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I would such as to make clear that the Regional Center Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 legislation that is part of the code. It just is a fact that a lot of the local centers that are merging investments have actually established those in places of high joblessness or in backwoods where half- million-dollar financial investments are permitted, which makes feeling.