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First, the program is put in an extremely weird and non-helpful bureaucratic location for the stimulation of worldwide investment in the USA. Second, its scale is all incorrect. We are distributing excessive for also small of a financial investment. Even more, raising equity capital half a million dollars a tranche is, to say the least, ineffective.


The local centers, with their half-million schemes, basically damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should be regarding creating service entities, not passive financial investments. It should be concerning producing actual jobs, not specify computations regarding the indirect production of work, which is currently part of the legislation.


Maybe that is just one of the reasons why it has fallen short time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with intermediaries, both public and personal. The program has even more than its share of scandals, which I will get involved in later on if anybody is interested.


This is a company that loves to claim yes to candidates, yet as the table in my testimony reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually really talked around a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently reason

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Seventh, in this program visas most likely to people that can not get them otherwise and to people whose scheduled financial investment is actually less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Allow me expand on among my monitorings.


My estimate based upon the capitalists' eco-friendly card applications submitted 2 years after the very first financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not provide the kind of information that we can use on this.


For every $100 of raised foreign financial investment that year, the EB program contributed one dime. Under a a lot more unsteady statistical base, the first applications of potential immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I look ahead to your comments and concerns. [The ready statement of David North looks like an entry for the document.] 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 immigration practice team.




Divine acted as Chief Guidance of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Director. He has functioned see here extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice head of state of the Association to Purchase USA, the national market organization of local facilities.


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


At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and obtaining towards that. Specifically as USCIS, the agency that oversees the program, has been making the guidelines clearer and the processes much more reasonable and clear for the people who are organizing investments and for the capitalists that are spending, even more individuals have actually been prepared and able to put initiative and cash right into the process to find good tasks and establish them, and then more investors have actually agreed to spend their cash and take the threat and utilize the money to develop the work that is the point of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, actually, they are ready to reject applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It belongs to an appropriations costs that was enacted in click here for info 1992, and since then that program has been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a good while to develop a job and after that to get the financiers authorized. And they do not desire their cash flowing through till they have been approved. And the specter of the expiration of this Regional Facility Program in September is already dissuading the advancement of projects.

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I wish to clarify that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a you can look here feature of the regular EB-5 regulation that belongs to the code. It simply is a truth that the majority of the regional facilities that are pooling financial investments have actually set those in areas of high unemployment or in backwoods where half- million-dollar financial investments are allowed, which makes feeling.