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First, the program is positioned in a really odd and non-helpful administrative place for the excitement of worldwide financial investment in the United States. Second, its scale is all incorrect. We are giving away too much for as well small of an investment. Additionally, raising financial backing fifty percent a million bucks a tranche is, to claim the least, ineffective.

The local centers, with their half-million plans, essentially damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to have to do with producing company entities, not easy investments. It must be concerning producing actual tasks, not clarify estimations about the indirect development of work, which is currently part of the regulation.


Perhaps that is just one of the reasons that it has failed time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of intermediaries, both public and exclusive. The program has more than its share of detractions, which I will certainly get into later on if anybody is interested.


This is a company that loves to claim yes to applicants, however as the table in my testimony shows, USCIS police officers have far more difficulty with EB-5 applications than others. I think that is something that no one has truly spoken around much. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever factor

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Seventh, in this program visas go to people who might not obtain them otherwise and to people whose scheduled investment is in fact much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Let me expand on among my observations.


My price quote based upon the financiers' permit applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not offer the kind of data that we might utilize on this.


So for every $100 of increased international financial investment that year, the EB program contributed one penny. Under a a lot more unsteady analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I eagerly anticipate your comments and concerns. [The ready declaration of David North looks like a submission for the document.] 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 firm's immigration technique team.

Divine functioned as Principal Guidance of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program in exclusive method. He was chosen, as I recognize, vice president of the Organization to Spend in United States, the national market association of regional.


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


At many, if all 10,000 slots were used, it would be 1 percent of the migration each year to the USA. It is not near that yet, but it is growing and obtaining toward that. Especially as USCIS, the agency that looks after the program, has actually been making the guidelines clearer and the processes more rational and clear for individuals that are arranging investments and for the capitalists that are spending, even more individuals have been willing and able to place effort and cash into the process to find excellent projects and establish them, and after that extra investors have actually agreed to spend their money and take the threat and use the money to develop the tasks that is the point of the program.

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These projects do not wait about for life, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they are prepared to refute applications that are not qualifying. And they do so, as was stated

The regional center part of the program is not. It belongs to an appropriations expense that was passed in 1992, and given that then that program has been go to website extended 5 times for 19 years. It is time for it to be see here now irreversible, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes an excellent while to develop a task and afterwards to get the financiers approved. And they do not want their cash moving with up until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently preventing the growth of jobs.

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I would love to clarify that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 law that belongs to the code. It just is a truth that the majority of the regional centers that are pooling financial investments have established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes sense.