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The program is positioned in an extremely strange and non-helpful administrative place for the excitement of global investment in the United States. Second, its scale is all wrong. We are offering away way too much for also small of a financial investment. Even more, raising financial backing fifty percent a million bucks a tranche is, to claim the least, ineffective.

The local centers, with their half-million systems, essentially damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should be about developing business entities, not easy investments. It needs to have to do with developing real work, not clarify estimations regarding the indirect development of jobs, which is currently part of the regulation.


Probably that is one of the reasons why it has stopped working every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will certainly get involved in later on if anybody is interested.


This is a firm that likes to state yes to applicants, however as the table in my statement shows, USCIS police officers have far more problem with EB-5 applications than others. I assume that is something that no one has actually really discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever reason

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Seventh, in this program visas go to people that can not obtain them otherwise and to people whose planned investment is really less, according to the Federal Get, than the typical mean total assets of all American family members in 2007. Allow me broaden on among my observations.


My price quote based on the capitalists' permit applications submitted 2 years after the first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not supply the sort of data that we could make use of on this.


So for each $100 of boosted foreign financial investment that year, the EB program added one cent. Under a a lot more shaky statistical base, the initial applications of potential immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. I anticipate your comments and questions. [The ready declaration of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method team.

Divine worked as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Director. He has functioned thoroughly with the EB-5 program in exclusive method. He was elected, as I understand, vice president of the Organization to Purchase United States, the nationwide market association of local centers.


DECLARATION OF EB5 Regional Center Program 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. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, but it is expanding and obtaining toward that. Particularly as USCIS, the firm that oversees the program, has actually been making the regulations clearer and the processes much more reasonable and clear for individuals that are arranging investments and for the financiers that are investing, even more individuals have been eager and able to put effort and cash right into the process to locate good jobs and establish them, and after that much more capitalists have actually been eager to spend their cash and take the risk and use the cash to develop 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 up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, in truth, they are ready to refute applications that are not certifying. And they do so, as was pointed out

The regional facility part of the program is not. It becomes part of an appropriations expense that was established in 1992, and considering that then that program has actually been prolonged 5 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 date of expiry in September.


The process takes a great while to develop a job and afterwards to obtain the investors accepted. And they do not want their cash flowing with until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already inhibiting the advancement of tasks.

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I would like to make clear that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a fact that a lot of the local facilities that are pooling financial investments have actually set those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, and that makes sense.