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The program is placed in a really strange and non-helpful governmental area for the excitement of global investment in the United States. We are providing away as well much for too little of a financial investment.


The local facilities, with their half-million schemes, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, must have to do with creating service entities, not easy financial investments. It must be about producing genuine jobs, not specify computations concerning the indirect development of work, which is currently component of the legislation.


Probably that is one of the reasons that it has failed every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also full of middlemen, both public and private. The program has greater than its share of detractions, which I will get involved in later if anyone is interested.


This is an agency that likes to state yes to applicants, yet as the table in my statement reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that no one has actually actually chatted around a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever factor

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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 actually less, according to the Federal Get, than the average mean total assets of all American families in 2007. Allow me broaden on one of my monitorings.


My estimate based upon the financiers' 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 confirmed-- that is my quote. USCIS does not supply the sort of information that we could utilize on this.


So for each $100 of boosted international investment that year, the EB program contributed one penny. Under a far more wobbly statistical base, the first applications of prospective immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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




Divine more info worked as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice president of the Association to Purchase U.S.A., the national industry organization of regional facilities.


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


At a lot of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, but it is expanding and obtaining towards that. Specifically as USCIS, the firm that oversees the program, has actually been making the policies clearer and the processes much more logical and clear for the people that are organizing investments and for the financiers that are investing, even more people have actually been willing and able to put initiative and cash into the process to find good projects and establish them, and afterwards more capitalists have actually wanted to invest their money and take the danger and use the cash to create the jobs that is the point of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, actually, they are prepared to deny applications that are not certifying. And they do so, as was discussed


The regional center component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and given that then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to work up a project and afterwards to get the investors authorized. And they do not desire their cash flowing via until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the advancement of tasks.

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I wish to clear up that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 legislation that belongs to the code. It just is a fact that a lot of the regional facilities that are merging investments have established those in locations of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes good sense.