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Initially, the program is positioned in a really odd and non-helpful governmental location for the excitement of global financial investment in the USA. Second, its range is all incorrect. We are giving away excessive for as well little of a financial investment. Better, elevating equity capital fifty percent a million dollars a tranche is, to say the least, inefficient.


The regional centers, with their half-million systems, essentially undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should have to do with developing company entities, not passive financial investments. It ought to be about producing real jobs, not clarify calculations regarding the indirect development of tasks, which is currently component of the legislation.


Probably that is just one of the reasons why it has failed year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also filled up with middlemen, both public and personal. The program has even more than its share of scandals, which I will certainly enter later on if anyone is interested.


This is a firm that likes to claim yes to applicants, but as the table in my statement reveals, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that no one has truly talked around much. EB5 Regional Center Program. There are high rates of internal rejections in this program and for good reason

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Seventh, in this program visas go to individuals who might not get them differently and to people whose organized financial investment is actually much less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Allow me broaden on one of my monitorings.


My estimate based on the capitalists' eco-friendly card applications submitted 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not give the sort of data that we could utilize on this.


For every $100 of raised international investment that year, the EB program added one penny. Under a a lot more wobbly statistical base, the preliminary applications of would-be immigrant financiers, USCIS is informing journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I expect your comments and concerns. [The ready declaration of David North looks like a submission for the record.] Chairman Leahy. Thanks. 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 migration method group.




Divine worked as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Director. He has worked extensively with the EB-5 program in private technique. He was chosen, as I comprehend, vice president of the Organization to Invest in USA, the national industry organization of regional.


Divine, we are delighted to have you right here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, advice if all 10,000 ports were utilized, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, however it is expanding and obtaining towards that. Especially as USCIS, the agency that supervises the program, has been making the rules more clear and the procedures extra logical and clear for the people who are arranging financial investments and for the financiers who are investing, even more individuals have been ready and able to place initiative and money into the procedure to find good jobs and create them, and afterwards much more investors have actually wanted to invest their money and take the risk and make use of the cash to develop the tasks that is the factor of the program.

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These tasks do not wait about for life, and USCIS understands that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not our website imply that they are unwinding their scrutiny, and, actually, 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 becomes part of an appropriations bill that was enacted in 1992, and ever since that program has actually been extended 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 expiration in September.


The process takes a great while to function up a task and then to get the investors accepted. And they do not want their money flowing via up until they have been approved. And the specter of the expiration of this Regional Center Program in September is go already dissuading the growth of tasks.

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I would love to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It just is a reality that many of the regional facilities that are pooling financial investments have actually set those in areas of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes feeling.