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The program is positioned in a very odd and non-helpful administrative area for the stimulation of worldwide investment in the United States. Second, its range is all incorrect. We are distributing way too much for too little of a financial investment. Further, raising financial backing half a million bucks a tranche is, to say the least, inefficient.


The regional facilities, with their half-million schemes, basically undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to be about developing company entities, not easy investments. It should be concerning creating actual tasks, not specify computations about the indirect development of work, which is now component of the legislation.


Maybe that is one of the reasons that it has actually failed time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of middlemen, both public and personal. The program has even more than its share of scandals, which I will certainly obtain into later if any person is interested.


This is a company that loves to state yes to applicants, yet as the table in my statement reveals, USCIS officers have a lot more problem with EB-5 applications than others. I assume that is something that no one has actually actually chatted around a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently factor

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Seventh, in this program visas most likely to people that might not obtain them differently and to people whose organized investment is actually much less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Let me increase on one of my observations.


My estimate based upon the investors' copyright applications submitted 2 years after the initial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the type of data that we could utilize on this.


So for every single $100 of raised foreign investment that year, the EB program added one penny. Under a far more shaky statistical base, the preliminary applications of prospective immigrant investors, USCIS is informing journalists that the level 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 method group.




Divine worked as Chief Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and then Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program in exclusive technique. He was elected, as I understand, vice head of state of the Association to Invest in United States, the nationwide market association of local.


Divine, we are happy to have you below. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were used, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, but it is growing and obtaining towards that. Specifically as USCIS, the firm that oversees the program, has been making the regulations more clear and the processes much more rational and clear for the people who are arranging investments and for the capitalists that are spending, more people have agreed and able to put effort and cash into the procedure to discover excellent projects and establish them, and after that a lot more capitalists have been ready to spend their money and click here take the threat and make use of the money to develop the tasks that is the point of the program.

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These projects do not wait about permanently, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, in fact, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The local facility part of the program is not. It is component of an appropriations expense that was established in 1992, and since then that program has actually been expanded 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes an excellent while to function up a job and afterwards to obtain the investors accepted. And they do not want their money moving via until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already preventing the advancement of projects.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that belongs to the code. It just is a reality that a lot of the local facilities that are merging financial investments have actually established those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, and that makes good sense.