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The program is put in a very weird and non-helpful bureaucratic location for the stimulation of global investment in the United States. Second, its scale is all incorrect. We are distributing as well much for also little of a financial investment. Further, raising equity capital fifty percent a million bucks a tranche is, to state the least, inefficient.


The local facilities, with their half-million schemes, essentially damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should have to do with developing business entities, not passive investments. It needs to be concerning developing actual tasks, not specify computations concerning the indirect production of jobs, which is now part of the regulation.


Probably that is just one of the reasons why it has stopped working every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled up with intermediaries, both public and exclusive. The program has more than its share of detractions, which I will get involved in later on if any person is interested.


This is an agency that likes to claim yes to candidates, however as the table in my testimony reveals, USCIS police officers have much a lot more problem with EB-5 applications than others. I think that is something that no one has actually really talked around a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently reason

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Seventh, in this program visas most likely to individuals that can not get them any various other method and to individuals whose planned financial investment is really less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Let me increase on among my monitorings.


My quote based upon the capitalists' copyright applications submitted 2 years after the very first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not supply the sort of data that we can utilize on this.


So for every $100 of increased international investment that year, the EB program added one cent. Under a far more wobbly analytical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for listening to me. I eagerly anticipate your remarks and questions. [The prepared statement 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 immigration method group.




Divine offered as Principal Guidance of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Director, and then read the full info here Performing Deputy Director. He has functioned extensively with the EB-5 program secretive practice. He was elected, as I understand, vice president of the Association to Buy United States, the national sector organization of local facilities.


Divine, we are thrilled to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the agency that looks after the program, has been making the regulations more clear and the procedures much more logical and clear for individuals who are arranging investments and for the investors that are spending, even more individuals have been prepared and able to place effort and cash right into the procedure to find excellent jobs and develop them, and afterwards extra investors have wanted to invest their money other and take the danger and make use of the money to develop the jobs that is the factor of the program.

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These projects do not wait about for life, and USCIS comprehends that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest 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 stated


The local facility component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has actually been expanded five times for 19 years. It check out here is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes an excellent while to develop a project and afterwards to obtain the capitalists approved. And they do not want their money moving via till they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the development of tasks.

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I would love to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 legislation that becomes part of the code. It just is a fact that the majority of the local centers that are merging investments have set those instead of high unemployment or in rural areas where half- million-dollar investments are enabled, and that makes good sense.