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The program is positioned in a very strange and non-helpful governmental place for the stimulation of global financial investment in the United States. We are providing away as well much for as well little of an investment.

The local centers, with their half-million plans, basically undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, must be regarding producing service entities, not passive financial investments. It should be about creating genuine jobs, not elaborate computations about the indirect development of tasks, which is now component of the regulations.


Maybe that is one of the reasons it has actually failed time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of intermediaries, both public and private. The program has more than its share of scandals, which I will certainly enter into later if any person is interested.


This is a company that loves to say yes to candidates, however as the table in my testimony shows, USCIS police officers have far more difficulty with EB-5 applications than others. I think that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and forever factor

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Seventh, in this program visas most likely to people who can not obtain them differently and to people whose organized investment is actually less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Let me expand on among my observations.


My estimate based upon the capitalists' permit applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not give the sort of data that we could utilize on this.


So for each $100 of enhanced foreign investment that year, the EB program added one penny. Under a much extra shaky statistical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the degree 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 migration practice group.

Divine offered as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I comprehend, vice head of state of the Organization to Spend in USA, the national industry association of local.


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


At the majority of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, yet it is expanding and getting toward that. Specifically as USCIS, the company that looks after the program, has actually been making the policies more clear and the processes much more sensible and clear for the people that are organizing investments and for the financiers who are spending, even more people have actually wanted and able to place initiative and cash into the procedure to find excellent jobs and establish them, and after that much more financiers have actually been eager to invest their cash and take the risk and utilize the cash to develop the work that is the factor of the program.

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These tasks do not wait about permanently, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, actually, they are prepared to refute 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 bill that was established in 1992, and considering that then that program has actually been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes an excellent while to work up a project and after that to get the investors accepted. And they do not desire their money streaming via until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is already inhibiting the growth of tasks.

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I would such as to clear up 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 legislation that becomes part of the code. It just is a reality that a lot of the regional centers that are merging financial investments have set those in locations of high joblessness or in country areas where half- million-dollar financial investments are permitted, which makes good sense.