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Initially, the program is positioned in a really strange and non-helpful governmental area for the stimulation of worldwide investment in the USA. Second, its scale is all incorrect. We are handing out excessive for as well small of an investment. Further, elevating equity capital half a million dollars a tranche is, to claim the least, inefficient.


The regional centers, with their half-million plans, basically undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to be about producing company entities, not passive financial investments. It should be about creating genuine tasks, not specify calculations regarding the indirect production of tasks, which is now part of the regulation.


Maybe that is just one of the reasons that it has fallen short time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly enter later on if anyone is interested.


This is an agency that loves to say yes to candidates, however as the table in my statement reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that nobody has actually discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely factor

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Seventh, in this program visas most likely to people that could not obtain them otherwise and to individuals whose organized investment is in fact less, according to the Federal Book, than the average mean internet well worth of all American family members in 2007. Allow me increase on one of my monitorings.


My estimate based upon the financiers' copyright applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not give the type of information that we might use on this.


So for every $100 of increased international investment that year, the EB program added one dime. Under a far more unsteady statistical base, the preliminary applications of would-be immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us approve 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 looks like an entry 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 immigration practice group.




Divine served as Principal Counsel of the United States Citizenship and Migration Providers from browse around this site July 2004 till November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Supervisor. He has functioned extensively with the EB-5 program secretive practice. He was elected, as I understand, vice president of the Association to Buy USA, the national market organization of local facilities.


Divine, we are happy to have you here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the company that oversees the program, has actually been making the rules clearer and the processes extra rational and clear for the people who are organizing investments and for the financiers who are spending, more individuals have agreed and able to place effort and cash right into the process to find excellent tasks and develop them, and after that a lot more financiers have agreed to invest their cash and take the risk and utilize the money to develop the tasks that is the factor of the program.

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These jobs do not linger for life, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, see page as was mentioned


The regional facility part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiration in September.


The process takes a great while to work up a job and after that to obtain the capitalists approved. And they do not desire their money moving with up until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already preventing the advancement of projects.

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I would love to clarify that the Regional Facility Program is not the like the learn the facts here now half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 legislation that is part of the code. It just is a truth that a lot of the local centers that are pooling investments have actually established those in places of high joblessness or in backwoods where half- million-dollar financial investments are permitted, and that makes sense.