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The program is put in an extremely weird and non-helpful bureaucratic place for the excitement of international financial investment in the United States. Second, its scale is all incorrect. We are handing out excessive for as well small of a financial investment. Better, raising venture capital half a million dollars a tranche is, to say the least, inefficient.

The regional facilities, with their half-million schemes, basically damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to have to do with creating service entities, not passive financial investments. It ought to be concerning producing actual tasks, not specify estimations about the indirect development of work, which is now part of the regulation.


Possibly that is among the reasons it has actually stopped working time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also filled with intermediaries, both public and private. The program has more than its share of rumors, which I will enter later on if anyone is interested.


This is a firm that loves to claim yes to applicants, but as the table in my statement reveals, USCIS officers have much a lot more problem with EB-5 applications than others. I think that is something that nobody has actually really talked around much. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever reason

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Seventh, in this program visas go to individuals that might not get them any kind of various other method and to people whose organized investment is really much less, according to the Federal Get, than the average mean web well worth of all American families in 2007. Let me broaden on one of my monitorings.


My price quote based on the financiers' permit applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not give the type of information that we might utilize on this.


For every $100 of raised foreign investment that year, the EB program added one penny. Under a a lot more unsteady statistical base, the first applications of prospective immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thank you for listening to me. I expect your comments and inquiries. [The ready important link statement of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method group.

Divine worked as Principal Advice of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program in personal method. He was elected, as I recognize, vice president of the Association to Spend in USA, the nationwide sector association of regional.


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, Legislator Grassley, and others.


At a lot of, if all 10,000 slots click over here now were made use of, it would be 1 percent of the immigration each year to the United States. It is not near that yet, but it is growing and getting towards that. Specifically as USCIS, the agency that looks after the program, has actually been making the guidelines clearer and the procedures extra rational and clear for the individuals who are organizing financial investments and for the capitalists that are investing, more people have actually wanted and able to place effort and cash into the process to find good jobs and establish them, and after that more financiers have actually wanted to spend their money and take the risk and utilize the cash to create the tasks that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, in reality, they are prepared to refute applications that are not qualifying. And they do so, as was stated

The regional facility component of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has been expanded 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 day of expiry in September.


The process takes a great while to develop a job and after that to get the capitalists accepted. And they do not want their cash flowing with till they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the growth of jobs.

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I would certainly such as to clarify that the Regional Center Home Page Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 law that is part of the code. It just is a truth that a lot of the regional centers that are pooling financial investments have actually established those in areas of high joblessness or in country locations where half- million-dollar investments are allowed, which makes good sense.