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The program is placed in a really odd and non-helpful administrative area for the excitement of international investment in the United States. Second, its range is all incorrect. We are offering away way too much for too tiny of an investment. Additionally, raising equity capital half a million bucks a tranche is, to claim the least, inefficient.


The regional facilities, with their half-million systems, basically undercut the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to have to do with developing company entities, not passive financial investments. It should have to do with creating genuine tasks, not elaborate calculations regarding the indirect development of jobs, which is currently part of the regulation.


Probably that is just one of the factors why it has fallen short year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will obtain into later on if anybody is interested.


This is a firm that likes to say yes to candidates, however as the table in my testimony shows, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that nobody has actually truly spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and completely reason

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Seventh, in this program visas most likely to individuals that might not obtain them differently and to individuals whose planned investment is really much less, according to the Federal Reserve, than the typical mean internet worth of all American family members in 2007. Allow me broaden on one of my monitorings.


My quote based on the capitalists' permit applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not give the sort of data that we might utilize on this.


So for every $100 of boosted international financial investment that year, the EB program added one cent. Under a far more shaky analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thank you for listening to me. I anticipate your comments and concerns. [The ready declaration of David North appears as 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 migration practice team.




Divine worked as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and then Acting Deputy Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice head of state of the Association to Purchase U.S.A., the national sector organization of regional facilities.


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


At a lot of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the firm that supervises the program, has actually been making the guidelines more clear and the procedures much more sensible and clear for the individuals that are organizing financial investments and for the investors that are investing, even more people have agreed and able to put initiative and money into the process to locate good jobs and create them, and afterwards a lot more investors have actually wanted to invest their money and take the risk and make use of the cash to produce the tasks that is the factor of the program.

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These tasks do not linger for life, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and because then that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes an excellent while to develop a task and afterwards to obtain the investors approved. And they do not desire their money moving with up until they have been authorized. And the specter of the expiry of this Regional Center Program in September is already discouraging the advancement of tasks.

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I would love to clarify that the Regional Center Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. It just click here is a truth that a lot of the regional facilities that are merging financial investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, which makes feeling.