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The program is placed in a very odd and non-helpful governmental area for the stimulation of international financial investment in the United States. Second, its scale is all incorrect. We are handing out excessive for also tiny of a financial investment. Even more, elevating equity capital half a million dollars a tranche is, to state the least, ineffective.

The regional facilities, with their half-million systems, basically damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to be concerning creating company entities, not easy financial investments. It needs to be about creating real jobs, not elaborate computations regarding the indirect production of tasks, which is currently component of the regulation.


Perhaps that is just one of the reasons that it has actually fallen short time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well full of middlemen, both public and private. The program has more than its share of scandals, which I will get involved in later on if any person is interested.


This is an agency that likes to state yes to candidates, yet as the table in my testimony shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever factor

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Seventh, in this program visas most likely to individuals who can not get them otherwise and to individuals whose planned investment is really less, according to the Federal Reserve, than the ordinary mean net worth of all American families in 2007. Allow me expand on among my observations.


My price quote based on the capitalists' environment-friendly card applications submitted 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not give the type of information that we might utilize on this.


So for every $100 of boosted foreign investment that year, the EB program added one dime. Under a a lot more wobbly statistical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your comments and concerns. [The prepared declaration of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique group.

Divine worked as Chief Advise of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and then Acting Deputy Director. He has actually functioned thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Organization to Purchase USA, the national market association of local facilities.


Divine, we are delighted to have you here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, here P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you 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 USA. It is not near that yet, but it is expanding and getting towards that. Specifically as USCIS, the firm that supervises the program, has been making the policies clearer and the processes more sensible and clear for individuals that are organizing investments and for the investors that are spending, even more people have been ready and able to place effort and money into the process to discover good projects and establish them, and afterwards more investors have actually been eager to spend their money and take the threat and use the cash to develop the tasks that is the point of the program.

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These tasks do not wait about forever, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they are ready to refute applications that are not qualifying. And they do so, as was discussed

The local facility component of the program is not. It belongs to an appropriations bill that was passed in 1992, and since then that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to develop a job and then to get the capitalists accepted. And they do not desire their money flowing with up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already preventing the growth of projects.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 law that becomes part of the code. It just is a fact that many of the local centers that are merging investments have actually set those instead of high joblessness or in backwoods where half- million-dollar financial investments are enabled, and that makes feeling.