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First, the program is put in a very weird and non-helpful bureaucratic location for the stimulation of global financial investment in the USA. Second, its scale is all wrong. We are distributing as well much for also small of an investment. Further, increasing equity capital fifty percent a million bucks a tranche is, to say the least, inefficient.

The local 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 at all, as they carry out in Australia, must have to do with creating service entities, not passive investments. It must have to do with creating real jobs, not elaborate computations concerning the indirect production of jobs, which is now component of the regulations.


Maybe that is one of the reasons why it has failed every year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well filled with middlemen, both public and exclusive. The program has even more than its share of detractions, which I will certainly enter later on if anyone is interested.


This is an agency that loves to claim yes to applicants, however as the table in my statement reveals, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that no one has really spoken about much. EB5 Regional Center Program. There are high rates of internal denials in this program and for great factor

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Seventh, in this program visas most likely to individuals who might not obtain them differently and to individuals whose planned investment is in fact much less, according to the Federal Reserve, than the average mean internet well worth of all American households in 2007. Allow me expand on one of my observations.


My quote based on the investors' copyright applications filed 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 confirmed-- that is my price quote. USCIS does not give the type of information that we could utilize on this.


So for every single $100 of enhanced foreign investment that year, the EB program contributed one dime. Under a a lot more wobbly analytical base, the preliminary applications of potential immigrant financiers, USCIS is informing journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I look ahead to your remarks and questions. [The prepared declaration of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration technique group.

Divine offered as Chief Counsel of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Director. He has actually functioned thoroughly with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state of the Organization to Purchase United States, the national market organization of local facilities.


Divine, we are pleased to have you right here. Please go on, sir. check out this site DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having internet me.


At many, if all 10,000 slots were utilized, it would be 1 percent of the migration each year to the United States. It is not near that yet, yet it is expanding and getting towards that. Especially as USCIS, the company that supervises the program, has been making the policies clearer and the procedures more reasonable and clear for the people who are organizing financial investments and for the financiers that are spending, even more individuals have actually agreed and able to place initiative and money right into the process to locate good tasks and establish them, and after that much more financiers have actually been eager to spend their money and take the danger and utilize the cash to create the tasks that is the factor of the program.

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These projects do not linger permanently, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in reality, they are ready to refute applications that are not certifying. And they do so, as was mentioned

The regional facility part of the program is not. It belongs to an appropriations bill that was established in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer look at this now to the day of expiry in September.


The procedure takes a good while to develop a project and after that to obtain the investors authorized. And they do not desire their money moving through until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the advancement of tasks.

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I would love to clarify that the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a function of the routine 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 set those in locations of high joblessness or in country locations where fifty percent- million-dollar financial investments are allowed, and that makes good sense.