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The program is positioned in a really strange and non-helpful governmental area for the excitement of international investment in the United States. Second, its range is all incorrect. We are giving away as well much for as well little of a financial investment. Further, raising financial backing half a million dollars a tranche is, to state the least, ineffective.

The local centers, 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 at all, as they carry out in Australia, ought to have to do with producing business entities, not easy investments. It should be about creating real work, not elaborate calculations about the indirect creation of work, which is now component of the legislation.


Probably that is among the reasons that it has actually fallen short every year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well full of middlemen, both public and exclusive. The program has more than its share of rumors, which I will get involved in later on if any person is interested.


This is a company that enjoys to state yes to candidates, yet as the table in my testament reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually truly talked about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and completely factor

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Seventh, in this program visas go to individuals that can not obtain them differently and to individuals whose scheduled financial investment is actually 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 monitorings.


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


So for every $100 of enhanced foreign financial investment that year, the EB program added one penny. Under a a lot more unsteady statistical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I look forward to your comments and inquiries. [The prepared statement of David North looks like an entry for the document.] 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 immigration practice team.

Divine functioned as Chief Guidance of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Director. He has worked thoroughly with the EB-5 program in exclusive method. He was chosen, as I understand, vice head of state of the Organization to Invest in USA, the nationwide industry organization of local centers.


Divine, we are thrilled to have you right 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, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were utilized, it here would be 1 percent of the migration every year to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the firm that manages the program, has been making the guidelines clearer and the processes much more reasonable and clear for individuals who are organizing financial investments and for the investors who are spending, more people have actually been ready and able to put initiative and money into the process to locate good jobs and create them, and afterwards a lot more capitalists have been willing to invest their cash and take the threat and utilize the cash to develop the jobs that is the point of the program.

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These jobs do not linger for life, and USCIS recognizes that and are attempting to speed the program, speed 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 facility part of the program is not. It is part of an appropriations expense that was established in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to develop a job and after that to obtain the capitalists accepted. And they do not want their cash flowing with till they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the advancement of projects.

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I would love to clear up that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It just is a fact that the majority of the local centers that are merging financial investments have actually set those in areas of high unemployment or in rural areas where half- million-dollar investments are permitted, which makes sense.