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First, the program is put in an extremely strange and non-helpful bureaucratic area for the excitement of international investment in the United States. Second, its scale is all incorrect. We are providing away way too much for too tiny of an investment. Better, elevating financial backing fifty percent a million dollars a tranche is, to say the least, ineffective.


The regional facilities, with their half-million schemes, basically damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to have to do with developing business entities, not passive investments. It needs to be about developing real work, not elaborate estimations regarding the indirect production of tasks, which is now part of the regulations.


Possibly that is one of the reasons that it has fallen short every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well filled up with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will enter into later if anybody is interested.


This is a company that likes to state yes to candidates, but as the table in my testament reveals, USCIS police officers have much extra difficulty with EB-5 applications than others. I assume that is something that no one has really discussed much. EB5 Regional Center Program. There are high rates of inner rejections in this program and for excellent reason

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Seventh, in this program visas most likely to people that could not get them differently and to people whose scheduled investment is in fact much less, according to the Federal Reserve, than the typical mean internet worth of all American families in 2007. Let me broaden on one of my monitorings.


My estimate based upon the investors' copyright applications submitted 2 years after the initial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not supply the sort of information that we could use on this.


For every $100 of increased international financial investment that year, the EB program contributed one cent. Under a far more unsteady analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's immigration method group.




Divine served as Chief Advise of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has actually functioned extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Association to Invest in USA, the nationwide market organization of regional.


Divine, we are happy to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Particularly as USCIS, the company that supervises the program, has actually been making the policies more clear and the processes more rational and clear for individuals who are organizing financial investments and for the financiers who are spending, more people have actually been eager and able to put initiative and cash right into the procedure to locate good jobs and establish them, and after that much more capitalists have agreed to invest their cash and take the threat and use the cash to produce the jobs that is the point of the program.

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These projects do not wait about forever, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was discussed


The local center part of the program is not. It is part of an appropriations bill that was established in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiry in September.


The process takes a great while to develop a project and after that to get the capitalists approved. And they do not want their money streaming through up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the development of projects.

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I wish to clarify that the Regional Facility Program is not the like 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 truth that most of the local facilities that are pooling investments have set those in locations of website high joblessness or in backwoods where half- million-dollar financial investments are enabled, which makes good sense.