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The program is positioned in a very weird and non-helpful bureaucratic place for the excitement of worldwide financial investment in the United States. We are giving away also much for also tiny of an investment.


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 perform in Australia, should be about producing service entities, not easy investments. It should be about creating genuine work, not clarify computations about the indirect development of tasks, which is currently component of the legislation.


Maybe that is one of the reasons that it has failed every year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with middlemen, both public and private. The program has greater than its share of scandals, which I will get into later on if anyone is interested.


This is a company that likes to say yes to applicants, yet as the table in my testament shows, USCIS police officers have much extra difficulty with EB-5 applications than others. I assume that is something that no one has really 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 that might not obtain them any type of other method and to individuals whose scheduled investment is actually less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Let me broaden on among my observations.


My quote based on the investors' copyright applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not offer the kind of information that we can make use of on this.


So for each $100 of enhanced foreign investment that year, the EB program added one dime. Under a a lot more wobbly statistical base, the first applications of potential immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $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 company's migration technique team.




Divine functioned as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Director. He has actually worked extensively with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Association to Spend in USA, the nationwide industry organization of regional.


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


At the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration each year to the check here United States. It is not near that yet, but it is expanding and obtaining toward that. Particularly as USCIS, the company that supervises the program, has actually been making the policies clearer and the processes much more rational and clear for the individuals that are organizing investments and for the investors who are spending, even more people have wanted and able to place initiative and money into the process to discover excellent tasks and develop them, and then a lot more financiers have actually wanted to invest their money and take the danger and make use of the cash to create the tasks that is the point of the program.

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These projects do not wait about for life, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, as a matter of fact, they are ready to reject applications that are not certifying. And they do so, as was mentioned


The regional center component 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 long-term, and it requires to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to develop a job and afterwards to get the capitalists approved. And they do not want their cash flowing with till they have been authorized. And the specter of the expiry of this Regional Center Program in September is already discouraging the growth of jobs.

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I would like to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. It just is a truth that many of the local facilities that are merging financial investments have actually established those in locations of high joblessness or in rural locations where fifty percent- million-dollar financial investments are permitted, which makes good sense.