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First, the program is placed in an extremely weird and non-helpful bureaucratic place for the excitement of worldwide financial investment in the United States. Second, its scale is all incorrect. We are handing out also much for too tiny of a financial investment. Additionally, raising equity capital half a million dollars a tranche is, to say the least, ineffective.


The local centers, with their half-million systems, essentially undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, ought to have to do with producing service entities, not passive investments. It must be concerning producing genuine jobs, not specify calculations about the indirect creation of tasks, which is now part of the regulations.


Probably that is among the reasons it has stopped working time after time to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well filled with middlemen, both public and private. The program has even more than its share of detractions, which I will get involved in later on if any person is interested.


This is a company that likes to state yes to candidates, however as the table in my statement reveals, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently reason

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Seventh, in this program visas go to people who can not obtain them differently and to people whose scheduled investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me expand on one of my monitorings.


My quote based upon the investors' copyright applications submitted 2 years after the very first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not provide the sort of information that we can utilize on this.


So for each $100 of enhanced foreign financial investment that year, the EB program added one cent. Under a much more shaky analytical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I anticipate your comments and inquiries. [The ready statement of David North shows up as a submission for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice group.




Divine acted as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was chosen, as I comprehend, vice president of the Association to Spend in United States, the nationwide market association of local.


Divine, we are delighted 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, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were used, it would be 1 percent of the migration yearly to the USA. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the company that supervises the program, has been making the regulations clearer and the processes more sensible and clear for the individuals who are arranging financial investments and for the financiers that are investing, even more individuals have wanted and able to place initiative and money right into the procedure to find great jobs and develop them, and afterwards a lot more capitalists have been ready to spend their cash and take the risk and utilize the cash to create the tasks that is the factor of the program.

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These projects do not linger forever, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, in reality, they are ready to reject applications that are not qualifying. And they do so, as was pointed out


The local center component of the program is not. It is part of an appropriations costs that was passed in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to develop a project and after that to get the investors authorized. And they do not want their cash streaming with until they have actually been approved. And the specter here of the expiration of this Regional Facility Program in September is already preventing the development of jobs.

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I would love to clear up that the Regional Center Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 regulation that belongs to the code. It simply is a fact that a lot of the regional facilities that are merging investments have set those in places of high unemployment or in rural areas where half- million-dollar investments are allowed, and that makes good sense.