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Initially, the program is positioned in a very odd and non-helpful governmental area for the stimulation of worldwide financial investment in the USA. Second, its range is all incorrect. We are handing out way too much for as well little of a financial investment. Additionally, raising venture funding half a million bucks a tranche is, to claim the least, ineffective.


The local facilities, with their half-million systems, essentially undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should have to do with developing company entities, not passive investments. It should have to do with developing actual jobs, not elaborate calculations about the indirect creation of work, which is currently component of the legislation.


Maybe that is just one of the reasons that it has stopped working year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too filled with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will certainly enter into later if anybody is interested.


This is an agency that enjoys to say yes to applicants, however as the table in my testament reveals, USCIS officers have a lot more problem with EB-5 applications than others. I think that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and forever factor

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Seventh, in this program visas go to individuals who can not get them differently and to people whose scheduled financial investment is really less, according to the Federal Reserve, than the typical mean web worth of all American families in 2007. Allow me broaden on one of my monitorings.


My quote based on the financiers' permit applications submitted 2 years after the initial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not give the type of data that we might make use of on this.


So for every $100 of boosted foreign investment that year, the EB program added one penny. Under a a lot more unsteady statistical base, the preliminary applications of potential immigrant financiers, USCIS is informing reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I look forward to your comments and concerns. [The prepared statement of David North appears as 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 company's migration technique team.




Divine worked as Principal Advise of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Replacement Director. He has functioned extensively with the EB-5 program secretive practice. He was Continued elected, as I recognize, vice president of the Association to Spend in USA, the national sector organization of local.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, anchor P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Particularly as USCIS, the agency that manages the program, has actually been making the rules clearer and the processes much more reasonable and clear for the individuals that are organizing financial investments and for the investors who are spending, more people have wanted and able to place initiative and cash into the procedure to discover excellent tasks and create them, and afterwards much more financiers have actually agreed to invest their cash and take the threat and make use of the cash to create the work that is the factor of the program.

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These jobs do not linger for life, and USCIS understands helpful resources that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, actually, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The regional facility part of the program is not. It is part of an appropriations bill that was enacted in 1992, and ever since that program has been expanded 5 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 procedure takes a great while to develop a project and afterwards to get the investors accepted. And they do not desire their cash flowing through until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the advancement of jobs.

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I would love to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It simply is a fact that a lot of the regional facilities that are merging investments have set those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, and that makes feeling.