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Initially, the program is put in a very strange and non-helpful bureaucratic place for the stimulation of international financial investment in the USA. Second, its range is all wrong. We are offering away excessive for also little of an investment. Further, elevating venture capital fifty percent a million bucks a tranche is, to state the least, ineffective.


The regional centers, with their half-million schemes, basically damaged the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be regarding producing company entities, not passive investments. It should have to do with developing actual jobs, not clarify computations concerning the indirect production of work, which is now part of the regulations.


Maybe that is among the reasons it has stopped working year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also filled up with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter later on if anyone is interested.


This is an agency that loves to claim yes to applicants, yet as the table in my testament reveals, USCIS police officers have a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high prices of interior rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals who could not obtain them differently and to individuals whose organized financial investment is really much less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Allow me increase on among my observations.


My estimate based upon the financiers' permit applications filed 2 years after the initial financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not provide the sort of data that we might use on this.


So for every $100 of raised international financial investment that year, the EB program added one dime. Under a much extra unsteady statistical base, the preliminary applications of potential immigrant financiers, USCIS is informing reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I look onward to your comments and questions. [The prepared statement of David North shows up as an get more entry 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 migration technique group.




Divine worked as Principal Counsel of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. He has actually functioned thoroughly with the EB-5 program secretive method. He was chosen, as I comprehend, vice president of the Organization to Buy USA, the national industry association of regional facilities.


Divine, we are happy to have you below. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the company that manages the program, has been making the rules more clear and the procedures a lot more reasonable and clear for individuals who are organizing financial investments and for the investors that are investing, more individuals have actually been ready and able to put initiative and money right into the procedure to locate great jobs and create them, and afterwards much more investors have agreed to invest their cash and take the risk and utilize the money to develop the work that is the point of the program.

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These tasks do not linger for life, and USCIS comprehends that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not explanation mean that they are relaxing their examination, and, in truth, they prepare to reject applications that are not certifying. And they do so, as was pointed out


The local facility component of the program is not. It becomes part of an appropriations bill that was established in 1992, and given that then that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a great while to work up a project and after that to get the company website financiers accepted. And they do not desire their cash streaming with up until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already discouraging the advancement of jobs.

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I wish 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 becomes part of the code. It just is a fact that most of the local centers that are merging financial investments have actually set those in places of high joblessness or in country areas where half- million-dollar financial investments are enabled, and that makes feeling.