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The program is placed in a really odd and non-helpful administrative location for the excitement of international investment in the United States. Second, its range is all wrong. We are distributing excessive for as well little of an investment. Further, elevating equity capital half a million bucks a tranche is, to state the least, ineffective.

The regional facilities, with their half-million schemes, basically damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to be about creating service entities, not passive financial investments. It ought to have to do with developing genuine jobs, not elaborate computations regarding the indirect production of jobs, which is now component of the legislation.

Maybe that is one of the reasons it has failed year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will enter into later if anyone is interested.

This is a firm that likes to state yes to applicants, yet as the table in my testimony shows, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals that could not get them otherwise and to individuals whose scheduled investment is in fact much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Let me broaden on among my observations.

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

So for each $100 of boosted international investment that year, the EB program added one cent. Under a a lot more wobbly statistical base, the initial applications of prospective immigrant financiers, USCIS is informing reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I expect your remarks and questions. [The ready declaration of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method group.


Divine functioned as Chief Counsel of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has worked thoroughly with the EB-5 program secretive technique. He was elected, as I comprehend, vice president of the Organization to Invest in U.S.A., the national industry association of local.

Divine, we are thrilled to have you below. 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 U.S.A. click here (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.

At most, if all 10,000 ports were utilized, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Particularly as USCIS, the firm that manages the program, has been making the rules more clear and the processes much more reasonable and clear for the people that are arranging investments and for the investors who are spending, even more people have wanted and able to put effort and cash right into the process to find great tasks and establish them, and afterwards much more capitalists have been willing to spend their money and take the threat and utilize the money to produce the tasks that is the point of the program.

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These projects do not wait around for life, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, as a matter of fact, they are ready to deny applications that are not certifying. And they do so, as was mentioned

The regional center component of the program is not. It is part of an appropriations expense that was passed in 1992, and considering that then that program has actually been extended five 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 expiration in September.

The procedure takes a great while to develop a job and afterwards to obtain the capitalists accepted. And they do not want their cash moving with until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the advancement of projects.

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I would love to clarify that the Regional Center 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 law that belongs to the code. It just is a fact that a lot of the local centers that are merging investments have set those in places of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes feeling.

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