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The program is placed in a really odd and non-helpful administrative area for the excitement of global investment in the United States. Second, its scale is all incorrect. We are distributing too much for as well tiny of a financial investment. Further, increasing equity capital fifty percent a million bucks a tranche is, to say the least, ineffective.

The regional facilities, with their half-million schemes, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, should have to do with developing company entities, not passive investments. It ought to have to do with producing genuine jobs, not clarify calculations regarding the indirect production of work, which is now component of the legislation.


Maybe that is one of the reasons that it has stopped working year after year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with middlemen, both public and personal. The program has even more than its share of detractions, which I will obtain right into later on if anyone is interested.


This is a firm that loves to state yes to candidates, but as the table in my statement reveals, USCIS policemans have a lot a lot more trouble with EB-5 applications than others. I think that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high prices of inner denials in this program and permanently factor

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Seventh, in this program visas go to individuals who might not get them otherwise and to individuals whose planned investment is in fact much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Let me broaden on among my monitorings.


My quote based on the capitalists' environment-friendly card applications submitted 2 years after the initial financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not give the sort of information that we could utilize on this.


So for every single $100 of boosted foreign investment that year, the EB program added one cent. Under a far more shaky statistical base, the first applications of potential immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thanks for paying over here attention to me. I anticipate your comments and questions. [The prepared statement of David North appears as an entry for the record.] 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 firm's migration practice group.

Divine worked as Principal Guidance of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive method. He was elected, as I recognize, vice president of the Association to Spend in USA, the nationwide sector organization of regional.


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


At the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the firm that looks after the program, has been making the guidelines clearer and the procedures much more logical and clear for the people who are organizing financial investments and for the investors who are spending, more individuals have agreed and able to place effort and redirected here cash right into the process to discover excellent jobs and establish them, and afterwards much more capitalists have wanted to invest their money and take the danger and make use of the cash to develop the jobs that is the point of the program.

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These projects do not linger permanently, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was discussed

The regional center component of the program is not. It is part of an appropriations bill that was enacted in 1992, and considering that then that program has been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to work up a task and then to obtain the investors approved. And they do not want their money streaming through till they have been accepted. And the specter of the informative post expiry of this Regional Facility Program in September is currently discouraging the growth of projects.

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I would love to clarify that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a truth that many of the local facilities that are merging investments have actually established those instead of high unemployment or in rural areas where half- million-dollar financial investments are allowed, which makes good sense.