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The program is put in a very strange and non-helpful administrative place for the excitement of worldwide financial investment in the United States. Second, its range is all wrong. We are giving away excessive for as well small of a financial investment. Further, elevating equity capital half a million bucks a tranche is, to state the least, ineffective.

The regional centers, with their half-million plans, basically damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should have to do with developing business entities, not passive financial investments. It must have to do with creating real tasks, not clarify estimations regarding the indirect development of work, which is currently part of the legislation.


Probably that is one of the reasons it has failed time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of intermediaries, both public and private. The program has more than its share of detractions, which I will enter into later on if any person is interested.


This is a company that loves to state yes to candidates, however as the table in my statement shows, USCIS officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has actually actually chatted about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and for great factor

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Seventh, in this program visas most likely to people who can not obtain them differently and to individuals whose planned financial investment is actually much less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Allow me broaden on among my monitorings.


My estimate based on the financiers' eco-friendly card applications submitted 2 years after the very first investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not supply the type of information that we could utilize on this.


For every $100 of raised foreign investment that year, the EB program added one cent. Under a much more unsteady analytical base, the first applications of prospective immigrant investors, USCIS is telling 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 questions. [The ready statement of David North appears as an entry for the record.] 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 immigration technique team.

Divine worked as Chief Counsel of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Deputy Director. He has functioned thoroughly with the EB-5 program in personal method. He was chosen, as I understand, vice head of state of the Association to Spend in USA, the nationwide market organization of local facilities.


Divine, we are delighted to have you here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were made use of, it would be 1 percent of the immigration every year to the USA. It is not near that yet, however it is expanding and getting toward that. Particularly as special info USCIS, the agency that manages the program, has been making the policies more clear and the procedures extra reasonable and clear for the individuals that are arranging financial investments and for the investors that are investing, more individuals have agreed and able to place initiative and money right into the process to locate great projects and create them, and after that much more investors have actually been ready to spend their cash and take the threat and make use of the cash to develop the their explanation work that is the point of the program.

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These jobs do not wait around forever, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, in fact, they prepare to deny applications that are not certifying. And they do so, as was pointed out

The local facility component of the program is not. It is part of an appropriations expense that was passed in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be irreversible, and it needs see it here to be done now and not nearer to the date of expiry in September.


The procedure takes a great while to develop a task and afterwards to get the financiers approved. And they do not desire their cash moving via until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of projects.

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I wish to make clear 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 function of the normal EB-5 law that is component of the code. It simply is a truth that the majority of the regional facilities that are pooling investments have set those instead of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes feeling.