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The program is put in a really weird and non-helpful bureaucratic place for the stimulation of worldwide investment in the United States. Second, its range is all wrong. We are distributing excessive for too little of a financial investment. Further, raising equity capital fifty percent a million bucks a tranche is, to claim the least, ineffective.


The regional centers, with their half-million schemes, essentially damaged the a lot 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, must be concerning developing organization entities, not passive financial investments. It ought to have to do with producing real work, not clarify calculations regarding the indirect creation of tasks, which is now component of the regulation.


Possibly that is just one of the reasons it has actually failed time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too full of middlemen, both public and personal. The program has even 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 say yes to applicants, but as the table in my testament shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals that can not obtain them differently and to people whose organized financial investment is in fact much less, according to the Federal Book, than the ordinary mean internet well worth of all American families in 2007. Let me broaden on among my observations.


My quote based on the capitalists' permit applications submitted 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 offer the type of data that we could utilize on this.


So for every single $100 of raised international financial investment that year, the EB program added one dime. Under a much extra wobbly statistical base, the initial applications of would-be immigrant capitalists, USCIS is informing 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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Thanks for listening to me. I expect your comments and concerns. [The prepared statement of David North shows up as a submission 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 firm's immigration method team.




Divine functioned as Chief Advice of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program in private method. He was elected, as I recognize, vice president of the Association to Spend in United States, the national industry organization of local.


Divine, we are delighted to have you 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, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, however it is growing and obtaining toward that. Specifically as USCIS, the agency that looks after the program, has been making the regulations clearer and the processes more reasonable and clear for the people who are arranging investments and for the financiers that are investing, more individuals have agreed and able to put effort and cash into the process to discover excellent projects and establish them, and after that much more capitalists have actually agreed to invest their cash 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 linger for life, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations expense that was enacted in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to work up a task and then to obtain the financiers approved. And they do not desire their money moving with up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the advancement of get more info tasks.

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I would such as to clear up that the Regional Center Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It simply is a fact that a lot of the regional facilities that are merging investments have set those in locations of high joblessness or in rural locations where half- million-dollar financial investments are permitted, and that makes good sense.