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The program is put in an extremely weird and non-helpful bureaucratic place for the stimulation of worldwide financial investment in the United States. Second, its range is all wrong. We are giving away excessive for too small of a financial investment. Further, increasing financial backing fifty percent a million dollars a tranche is, to state the least, inefficient.

The regional centers, with their half-million plans, essentially undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, should be about producing service entities, not passive financial investments. It needs to be about producing real jobs, not clarify estimations about the indirect production of work, which is currently component of the regulation.


Maybe that is among the reasons it has fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with intermediaries, both public and private. The program has even more than its share of scandals, which I will certainly get involved in later if anyone is interested.


This is an agency that enjoys to claim yes to candidates, but as the table in my testament shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually truly spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever reason

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Seventh, in this program visas go to individuals that can not obtain them differently and to individuals whose scheduled investment is actually much less, according to the Federal Reserve, than the average mean net worth of all American families in 2007. Allow me expand on among my observations.


My estimate based on the investors' permit applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not supply the type of data that we can make use of on this.


For every $100 of enhanced foreign financial investment that year, the EB program contributed one penny. Under a much extra wobbly statistical base, the initial applications of would-be immigrant financiers, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's immigration practice group.

Divine offered site link as Chief Advice of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Director. He has actually worked thoroughly with the EB-5 program secretive method. He was elected, as I recognize, vice president of the Organization to Invest in USA, the nationwide market organization of regional.


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


At a lot of, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is expanding and getting towards that. Especially as USCIS, the firm that supervises the program, has actually been making the regulations more clear and the procedures much more reasonable and clear for individuals that are arranging investments and for the financiers who are investing, even more individuals have actually been prepared and able to place initiative and cash right go to these guys into the procedure to discover excellent projects and create them, and afterwards much more investors have actually been prepared to spend their money and take the risk and make use her response of the cash to develop the work that is the factor of the program.

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These projects do not wait around permanently, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was discussed

The regional center component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and considering that then that program has been expanded 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 day of expiration in September.


The procedure takes a good while to develop a project and afterwards to get the capitalists accepted. And they do not desire their cash flowing with till they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the development of projects.

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I would love to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 law that belongs to the code. It just is a truth that a lot of the regional centers that are pooling investments have actually established those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are allowed, which makes feeling.