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The program is put in a really odd and non-helpful administrative area for the excitement of global financial investment in the United States. Second, its scale is all wrong. We are offering away as well much for too tiny of an investment. Further, increasing venture capital half a million bucks a tranche is, to claim the least, ineffective.


The local facilities, with their half-million schemes, essentially undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, should be about developing business entities, not passive investments. It must be about developing actual jobs, not elaborate calculations about the indirect production of jobs, which is currently part of the regulation.


Probably that is one of the reasons that it has stopped working year after year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too full of intermediaries, both public and private. The program has even more than its share of rumors, which I will certainly enter into later on if anybody is interested.


This is an agency that loves to state yes to candidates, but as the table in my testimony reveals, USCIS officers have much a lot more trouble with EB-5 applications than others. I think that is something that nobody has actually really spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever reason

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Seventh, in this program visas most likely to individuals that can not obtain them otherwise and to individuals whose planned financial investment is in fact less, according to the Federal Book, than the average mean web well worth of all American families in 2007. Allow me increase on among my observations.


My estimate based on the financiers' environment-friendly card applications submitted 2 years after the first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not give the type of data that we could make use of on this.


For every $100 of raised foreign investment that year, the EB program contributed one dime. Under a much a lot more wobbly statistical base, the initial applications of prospective immigrant capitalists, USCIS is informing journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I look onward to your remarks and inquiries. [The prepared statement of David North appears as an entry for use this link the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method team.




Divine served as Chief Counsel of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Director. He has worked thoroughly with the EB-5 program in private practice. He was chosen, as I recognize, vice president of the Association to investigate this site Invest in U.S.A., the national industry organization of regional centers.


Divine, we are thrilled to have you right here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is growing and getting toward that. Specifically as USCIS, the company that looks after the program, has been making the regulations more clear and the procedures extra reasonable and clear for individuals that are arranging financial investments and for the investors that are investing, even more people have actually wanted and able to put effort and cash right into the procedure to locate great jobs and establish them, and after that more investors have wanted to spend their cash and take the threat and use the cash to create the tasks my blog 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 up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional facility part of the program is not. It belongs to an appropriations costs that was enacted in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to develop a task and after that to get the investors authorized. And they do not want their money flowing via until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of tasks.

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I would like to make clear that the Regional Facility 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 routine EB-5 regulation that is component of the code. It just is a reality that the majority of the local centers that are pooling financial investments have set those instead of high joblessness or in rural locations where half- million-dollar financial investments are permitted, which makes good sense.