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The program is put in a very odd and non-helpful bureaucratic area for the excitement of worldwide financial investment in the United States. Second, its scale is all incorrect. We are distributing way too much for too small of an investment. Even more, raising financial backing fifty percent a million bucks a tranche is, to say the least, ineffective.


The local centers, with their half-million systems, basically damaged the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must be concerning creating organization entities, not easy financial investments. It should have to do with producing real jobs, not clarify computations about the indirect creation of jobs, which is now part of the legislation.


Perhaps that is one of the reasons that it has failed time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with middlemen, both public and personal. The program has greater than its share of scandals, which I will enter later if any person is interested.


This is a firm that loves to state yes to candidates, however as the table in my statement shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently reason

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Seventh, in this program visas go to people that might not get them otherwise and to people whose planned financial investment is in fact less, according to the Federal Reserve, than the typical mean total assets of all American families in 2007. Let me broaden on among my observations.


My price quote based on the financiers' permit applications filed 2 years after the first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not offer the kind of data that we can utilize on this.


So for every $100 of increased international financial investment that year, the EB program contributed one penny. Under a a lot more wobbly analytical base, the first applications of prospective immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I expect your remarks and inquiries. [The ready statement of David North appears as an entry for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration check these guys out technique team.




Divine functioned as Principal check these guys out Advise of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Director. He has actually functioned thoroughly with the EB-5 program secretive method. He was elected, as I comprehend, vice president of the Organization to Spend in United States, the nationwide sector organization of local.


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


At most, if all 10,000 slots were utilized, it would be 1 percent of the immigration each year to the USA. It is not near that yet, but it is growing and getting toward that. Especially as USCIS, the firm that oversees the program, has been making the guidelines more clear and the procedures much more sensible and clear for individuals who are arranging financial investments and for the capitalists who are spending, even more individuals have wanted and able to put initiative and cash into the process to discover excellent jobs and establish them, and after that extra financiers have been willing to spend their cash and take the danger and utilize the cash to produce the jobs that is the factor of the program.

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These projects do not wait about permanently, and USCIS comprehends that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in truth, they are prepared to refute applications YOURURL.com that are not qualifying. And they do so, as was pointed out


The local center part of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever since that program has actually been expanded 5 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 after that to obtain the financiers accepted. And they do not desire their money flowing through till they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the advancement of jobs.

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I want to make clear that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 regulation that becomes part of the code. It just is a truth that the majority of the regional facilities that are merging investments have established those instead of high joblessness or in rural locations where fifty percent- million-dollar investments are allowed, and that makes good sense.