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First, the program is positioned in a really weird and non-helpful bureaucratic location for the excitement of global investment in the United States. Second, its range is all incorrect. We are distributing too much for also little of an investment. Additionally, increasing equity capital half a million bucks a tranche is, to state the least, ineffective.


The local facilities, with their half-million schemes, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to have to do with developing company entities, not easy investments. It ought to have to do with creating real jobs, not clarify computations concerning the indirect production of tasks, which is currently part of the legislation.


Probably that is one of the reasons it has actually failed time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with intermediaries, both public and private. The program has more than its share of rumors, which I will enter later if any person is interested.


This is a company that likes to state yes to candidates, however as the table in my statement reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has really 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 people that might not get them otherwise and to individuals whose scheduled investment is really less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Allow me increase on one of my observations.


My price quote based on the financiers' permit applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not offer the sort of data that we could make use of on this.


So for each $100 of boosted foreign investment that year, the EB program added one penny. Under a a lot more wobbly statistical base, the first applications of prospective immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's immigration technique team.




Divine served as Chief Guidance of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Supervisor. He has actually functioned thoroughly with the visite site EB-5 program in private technique. He was chosen, as I recognize, vice head of state of the Association to Spend in United States, the nationwide industry organization of local.


Divine, we are thrilled to have you right here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN 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 utilized, it would be 1 percent of the migration each year to the United States. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the firm that looks after the program, has been making the policies clearer and the procedures much more reasonable and clear for the individuals who are arranging financial investments and for the capitalists that are spending, even more people have actually agreed and able to place effort and cash right into the process to locate excellent projects and create them, and after that extra capitalists have wanted to spend their money and take the danger and utilize the money to develop the work that is the factor of the program.

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These tasks do not linger for life, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. go now It becomes part of an appropriations expense that was established in 1992, and given that then that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while check to develop a task and after that to get the capitalists approved. And they do not desire their cash moving through until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the development of jobs.

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I would love to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 regulation that is component of the code. It simply is a truth that a lot of the regional centers that are pooling investments have actually established those in places of high joblessness or in country areas where half- million-dollar investments are allowed, and that makes sense.