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First, the program is positioned in an extremely strange and non-helpful administrative place for the excitement of international investment in the USA. Second, its scale is all wrong. We are distributing excessive for as well little of an investment. Even more, raising financial backing fifty percent a million dollars a tranche is, to say the least, ineffective.


The regional centers, with their half-million plans, basically damaged 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, need to be concerning developing organization entities, not easy investments. It needs to be about producing genuine jobs, not elaborate calculations about the indirect creation of jobs, which is currently component of the regulation.


Maybe that is among the reasons that it has stopped working year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with middlemen, both public and personal. The program has more than its share of detractions, which I will certainly obtain into later if anyone is interested.


This is a company that loves to say yes to candidates, however as the table in my statement shows, USCIS policemans have much a lot more problem with EB-5 applications than others. I assume that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high rates of interior denials in this program and for excellent factor

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Seventh, in this program visas go to individuals who can not get them any kind of various other method and to individuals whose organized financial investment is really much less, according to the Federal Book, than the average mean total assets of all American households in 2007. Let me increase on among my monitorings.


My price quote based upon the investors' permit applications filed 2 years after the first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not give the kind of data that we can use on this.


For every $100 of boosted foreign investment that year, the EB program added one penny. Under a far more unsteady statistical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing reporters that the level of investment in the just-concluded anchor 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 company's migration technique team.




Divine functioned as Chief Counsel of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Supervisor. He has functioned extensively with the EB-5 program secretive practice. He was elected, as I recognize, vice head of state of the Organization to Spend in U.S.A., the national industry organization of local.


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


At the majority of, if all 10,000 slots were used, it would certainly additional info be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Especially as USCIS, the firm that looks after the program, has been making the regulations clearer and the procedures a lot more sensible and clear for individuals who are organizing financial investments and for the capitalists that are spending, even more people have actually wanted and able to put initiative and money right into the process to find excellent projects and establish them, and afterwards much more financiers have been eager to invest their money and take the threat and use the cash to develop the work that is the factor of the program.

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These tasks do not wait around for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The local center part of the program is not. It is component of an appropriations bill that was passed in 1992, and since then that program has been extended five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to function up a project and after that to get the investors approved. And they do not want their money flowing through until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently preventing the development of jobs.

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I want from this source to clear up 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 function of the normal EB-5 legislation that is part of the code. It just is a truth that most of the regional facilities that are merging financial investments have actually set those instead of high joblessness or in country locations where half- million-dollar investments are allowed, which makes sense.