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Initially, the program is put in a really strange and non-helpful bureaucratic location for the stimulation of international investment in the United States. Second, its scale is all wrong. We are handing out excessive for too small of an investment. Even more, raising venture capital half a million dollars a tranche is, to claim the least, ineffective.

The local facilities, with their half-million plans, essentially undercut the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with developing company entities, not passive financial investments. It should have to do with creating real tasks, not clarify computations concerning the indirect creation of work, which is currently part of the regulation.

Perhaps that is just one of the reasons why it has failed time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also loaded with intermediaries, both public and private. The program has greater than its share of scandals, which I will get involved in later on if any person is interested.

This is a firm that loves to claim yes to candidates, yet as the table in my testimony shows, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and forever reason

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Seventh, in this program visas go to individuals that can not obtain them differently and to individuals whose planned financial investment is actually less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Allow me broaden on one of my monitorings.

My estimate based on the capitalists' permit applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not give the type of information that we can make use of on this.

For every $100 of boosted foreign financial investment that year, the EB program contributed one dime. Under a far more unsteady analytical base, the initial applications of would-be immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for listening to me. I anticipate your comments and inquiries. [The prepared statement of David North shows up as an entry for the document.] 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 immigration technique group.


Divine acted as Principal Counsel of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program in private technique. He was chosen, as I understand, vice head of state of the Organization to Purchase U.S.A., the national sector organization of local facilities.

STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, go to this site INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.

At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and getting toward that. Particularly as USCIS, the firm that supervises the program, has actually been making the policies clearer and the procedures more sensible and clear for the individuals who are arranging financial investments and for the investors that are spending, even more people have agreed and able to place effort and money into the process to discover good projects and create them, and afterwards much more investors have been eager to invest their cash and take the threat and utilize the money to create the jobs that is the find here factor of the program.

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These projects do not linger forever, and USCIS comprehends that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, actually, they prepare to refute applications that are not certifying. And they do so, as was discussed

The regional facility component of the program is not. It is part of an appropriations expense that was established in 1992, and considering that 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 expiration in September.

The procedure takes a great while to work up a project and after that to get the investors approved. And they do not desire their money moving with up until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth of jobs.

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I would certainly like to clear up discover this that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 legislation that becomes part of the code. It just is a fact that most of the regional centers that are merging investments have actually established those in locations of high joblessness or in backwoods where half- million-dollar financial investments are enabled, and that makes sense.

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