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First, the program is positioned in a very odd and non-helpful governmental place for the stimulation of global investment in the USA. Second, its range is all incorrect. We are offering away too much for as well small of a financial investment. Better, raising venture capital half a million bucks a tranche is, to say the least, inefficient.


The local centers, with their half-million schemes, essentially undercut the much 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 have to do with creating service entities, not passive financial investments. It should have to do with developing actual jobs, not clarify calculations about the indirect production of tasks, which is currently part of the legislation.


Maybe that is one of the reasons it has fallen short time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also loaded with middlemen, both public and personal. The program has even more than its share of detractions, which I will get involved in later on if anyone is interested.


This is an agency that enjoys to state yes to applicants, yet as the table in my testament shows, USCIS officers have a lot extra problem 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 inner denials in this program and completely factor

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Seventh, in this program visas go to people that could not obtain them differently and to individuals whose scheduled investment is in fact less, according to the Federal Get, than the average mean internet well worth of all American families in 2007. Let me expand on among my observations.


My price quote based upon the investors' permit applications filed 2 years after the first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not supply the kind of data that we can utilize on this.


So for each $100 of increased foreign financial investment that year, the EB program contributed one dime. Under a a lot more shaky analytical base, the preliminary applications of prospective immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I anticipate your comments and inquiries. [The over at this website 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 method team.




Divine acted as Principal Counsel of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Supervisor. He has actually functioned extensively with the EB-5 program in exclusive method. He was elected, as I comprehend, vice president of the Association to Spend in U.S.A., the nationwide sector association of regional.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, however it is expanding and getting towards that. Especially as USCIS, the company that manages the program, has been making the policies more clear and the procedures much more logical and clear for the people that are organizing financial investments and for the investors that are spending, more people have actually been eager and able to put effort and cash right into the process to find great projects and develop them, and afterwards extra investors have actually agreed to spend their money and take the risk and use the cash have a peek here to produce the work that is the point of the program.

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These jobs do not wait about forever, and USCIS comprehends More Info that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, in reality, they prepare to reject applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and given that then that program has actually been extended five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes a great while to develop a job and afterwards to get the capitalists approved. And they do not want their money moving through until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the advancement of tasks.

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I would such as to clarify that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 law that is component of the code. It simply is a fact that a lot of the regional facilities that are pooling investments have established those in locations of high joblessness or in backwoods where half- million-dollar investments are allowed, which makes sense.