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Initially, the program is placed in an extremely strange and non-helpful administrative location for the stimulation of global investment in the United States. Second, its scale is all incorrect. We are giving away way too much for as well little of a financial investment. Better, raising equity capital fifty percent a million bucks a tranche is, to claim the least, inefficient.


The regional facilities, with their half-million schemes, basically damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, need to have to do with developing company entities, not easy investments. It needs to be about producing actual work, not specify calculations about the indirect creation of jobs, which is now part of the legislation.


Maybe that is one of the reasons that it has fallen short year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will certainly 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 testimony reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high rates of internal denials in this program and for great factor

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Seventh, in this program visas most likely to people that can not obtain them any other way and to people whose scheduled financial investment is in fact less, according to the Federal Book, than the typical mean net well worth of all American family members in 2007. Allow me broaden on one of my monitorings.


My quote based on the investors' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not supply the kind of data that we can make use of on this.


For every $100 of raised foreign financial investment that year, the EB program contributed one penny. Under a a lot more unsteady analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I eagerly anticipate your remarks and concerns. [The ready declaration of David North looks like an entry for the document.] 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 firm's immigration practice team.




Divine acted as Chief Advice of the United States Citizenship and Immigration Providers 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 in personal practice. He was elected, as I understand, vice president of the Organization to Purchase United States, the national industry organization of regional centers.


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


At many, if all 10,000 ports were made use of, it would be 1 percent of the immigration each year to the United States. It is not near that yet, but it is growing and getting towards that. Especially as USCIS, the firm that manages the program, has actually been making the rules clearer and the procedures much right here more rational and clear for the people that are arranging investments and for the financiers that are investing, more people have been eager and able to put effort and money into the procedure to find good projects and establish them, and afterwards more capitalists have wanted to invest their money and take the threat and use the cash to develop the jobs that is the point of the program.

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These projects do not linger forever, and USCIS comprehends that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they are all set to reject applications that are not qualifying. And they do so, as was stated


The regional facility component of the program is not. It belongs to an appropriations expense that was established in 1992, and since then that program has been prolonged 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 expiry in September.


The procedure takes an excellent while to develop a project and after that to obtain the investors accepted. And they do not desire their cash flowing through until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of jobs.

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I wish to make clear that you can look here the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 regulation that belongs to the code. It simply is a fact that a lot of the regional centers that are pooling investments have established those instead of high unemployment or in backwoods where half- million-dollar investments are permitted, which makes good sense.