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First, the program is put in an extremely strange and non-helpful administrative area for the stimulation of worldwide investment in the United States. Second, its range is all wrong. We are distributing way too much for also small of an investment. Even more, elevating equity capital half a million dollars a tranche is, to claim the least, ineffective.

The local facilities, with their half-million schemes, basically undercut the extra reasonable 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 creating service entities, not easy investments. It needs to be about creating genuine work, not specify calculations regarding the indirect creation of jobs, which is now part of the regulation.


Perhaps that is just one of the reasons it has fallen short year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of middlemen, both public and exclusive. The program has greater than its share of rumors, which I will certainly enter later on if anybody is interested.


This is a firm that likes to say yes to applicants, yet as the table in my statement shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and forever reason

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Seventh, in this program visas go to individuals who might not obtain them differently and to people whose planned investment is in fact less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Let me increase on among my monitorings.


My price quote based upon the capitalists' permit applications filed 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 quote. USCIS does not offer the sort of data that we could use on this.


For every $100 of increased international investment that year, the EB program contributed one cent. Under a far more unsteady analytical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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

Divine acted as Principal read more Advise of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Acting Replacement Director. He has worked extensively with the EB-5 program in private method. He was chosen, as I comprehend, vice head of state of the Association to Buy United States, the national market organization of local facilities.


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


At a lot of, if all 10,000 slots were used, it would be 1 percent of the migration annually to the United States. It is not near that yet, however it is expanding and obtaining towards that. Particularly as USCIS, the company that oversees the program, has been making the regulations clearer and the processes much more sensible and clear for the individuals who are arranging investments and for the investors who are investing, more people have been eager and able to place initiative and money into the process to find excellent tasks and develop them, and after that more investors have been eager to invest their cash and take the danger and utilize the money to create the tasks that is the factor of the program.

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These projects do not wait about permanently, and USCIS comprehends that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was stated

The regional center component of the program is not. It belongs to an appropriations expense that was passed in 1992, and considering that then that program has actually been extended five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes a great while to function up a project and after that to obtain the investors approved. And they do not want their money streaming through till they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the advancement of projects.

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I would like 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 is component of the code. It simply is a reality that a lot of the local centers that are pooling financial investments have actually set those in locations of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, and that makes good sense.