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The program is put in an extremely weird and non-helpful governmental place for the excitement of global financial investment in the United States. Second, its range is all wrong. We are distributing excessive for also small of an investment. Further, raising equity capital half a million dollars a tranche is, to state the least, ineffective.


The regional facilities, with their half-million schemes, basically damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, must be concerning producing company entities, not easy investments. It should have to do with creating genuine work, not clarify estimations regarding the indirect creation of jobs, which is now component of the legislation.


Maybe that is one of the reasons it has fallen short year after year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too filled up with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly enter later on if anybody is interested.


This is a firm that loves to state yes to applicants, however as the table in my testament reveals, USCIS police officers have much extra difficulty with EB-5 applications than others. I believe that is something that no one has actually actually spoken about much. EB5 Regional Center Program. There are high rates of internal denials in this program and completely reason

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Seventh, in this program visas go to people that can not get them otherwise and to people whose organized financial investment is really less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Let me broaden on one of my monitorings.


My price quote based upon the capitalists' permit 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 about $191 million confirmed-- that is my quote. USCIS does not provide the type of information that we can use on this.


So for every single $100 of increased international financial investment that year, the EB program added one cent. Under a much more shaky analytical base, the first applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and questions. [The prepared statement of David North shows up as an entry for the record.] Chairman Leahy. Thanks. 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 practice group.




Divine served as Chief Guidance of the USA Citizenship and Migration EB5 Regional Center Program Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in private practice. He was chosen, as I recognize, vice head of state of the Association to Invest in USA, the nationwide sector organization of local.


Divine, we are pleased to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were used, it would be 1 percent of the migration yearly to the United States. It is not near that yet, but it is expanding and obtaining toward that. Particularly as USCIS, the agency that supervises the program, has actually been making the guidelines more clear and the processes more rational and clear for individuals who are organizing investments and for the capitalists who are investing, more individuals have actually been willing and able to put effort and money into the process to discover great tasks and create them, and after that a lot more financiers have been ready to invest their money and take the danger and make use of the money to create the work that is the point of the program.

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These tasks do not linger forever, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The local center part of the program is not. It belongs to an appropriations costs that was enacted in 1992, and since then that program has been extended five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes a great while to work up a task and afterwards to get the investors approved. And they do not want their money streaming via until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the advancement of jobs.

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I want to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 regulation that is part of the code. It simply is a fact that the majority of the local facilities that are merging investments have established those instead of high joblessness or in backwoods where half- million-dollar financial investments are permitted, and that makes sense.