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First, the program is placed in a very odd and non-helpful governmental location for the excitement of worldwide financial investment in the United States. Second, its scale is all incorrect. We are offering away way too much for too tiny of an investment. Even more, raising equity capital fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional centers, with their half-million schemes, essentially undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, need to be regarding creating business entities, not easy financial investments. It must have to do with producing real jobs, not clarify calculations regarding the indirect development of jobs, which is currently part of the regulation.


Perhaps that is among the factors why it has failed year after year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also filled with intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter later if any person is interested.


This is a firm that loves to say yes to applicants, but as the table in my testimony shows, USCIS officers have far more problem with EB-5 applications than others. I assume that is something that no one has actually truly chatted about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and forever reason

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Seventh, in this program visas most likely to people that might not get them otherwise and to individuals whose organized financial investment is actually much less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Let me expand on one of my observations.


My quote based upon the capitalists' environment-friendly card applications submitted 2 years after the initial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not give the kind of data that we might use on this.


So for each $100 of boosted international financial investment that year, the EB program added one penny. Under a much more unsteady analytical base, the initial applications of potential immigrant capitalists, 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 listening to me. I expect your remarks and concerns. [The ready statement of David North looks like a submission 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 offered as Principal Advice of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Supervisor. He has actually EB5 Regional Center Program functioned extensively with the EB-5 program in private method. He was chosen, as I recognize, vice president of the Association to Purchase USA, the nationwide sector association of regional facilities.


Divine, we are pleased to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were made use of, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is growing and getting toward that. Especially as USCIS, the firm that manages the program, has actually been making the policies more clear and the processes a lot more sensible and clear for individuals who are organizing investments and for the investors that are investing, even more individuals have wanted and able to place initiative and cash right into the procedure to discover excellent jobs and develop them, and after that more capitalists have actually wanted to invest their cash and take the risk and utilize the cash to produce the jobs 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 the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, in fact, they prepare to refute applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiry in September.


The process takes a great while to develop a project and afterwards to obtain the financiers accepted. And they do not want their cash streaming via till they have been approved. And the specter of the expiration of this Regional Center Program in September is currently dissuading the development 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 concept of half a million or a million is a function of the routine EB-5 regulation that becomes part of the code. It simply is a fact that many of the local facilities that are merging financial investments have actually set those instead of high unemployment or in rural areas where half- million-dollar investments are permitted, and that makes good sense.