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The program is positioned in an extremely weird and non-helpful administrative place for the excitement of global financial investment in the United States. We are providing away also much for too tiny of a financial investment.


The regional facilities, with their half-million systems, essentially undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, need to be concerning producing organization entities, not passive financial investments. It needs to be about creating actual jobs, not clarify calculations regarding the indirect creation of jobs, which is now part of the legislation.


Possibly that is one of the reasons that it has fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too full of intermediaries, both public and private. The program has even more than its share of rumors, which I will get involved in later if any person is interested.


This is a company that loves to say yes to applicants, yet as the table in my statement shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high rates of internal denials in this program and forever factor

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Seventh, in this program visas most likely to people that could not get them differently and to people whose organized investment is actually less, according to the Federal Reserve, than the ordinary mean net well worth of all American families in 2007. Let me increase on one of my monitorings.


My price quote based upon the investors' permit applications filed 2 years after the initial financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not provide the kind of data that we might utilize on this.


For every $100 of enhanced foreign investment that year, the EB program added one penny. Under a much a lot more shaky analytical base, the preliminary applications of would-be immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year was about $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 company's immigration technique team.




Divine acted as Chief Advise of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Supervisor. He has actually worked thoroughly with the EB-5 program secretive technique. He was elected, as I comprehend, vice head of state of the Association to Purchase U.S.A., the national market association 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 U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Particularly as USCIS, the agency that oversees the program, has actually been making the policies clearer and the processes a lot more rational and clear for individuals that are organizing investments and for the financiers that are spending, even more people have actually been willing and able to place effort and money right into the procedure to find great projects and establish them, and afterwards much more investors have actually been prepared to spend their money and take the danger and utilize the money to create the work that is the point of the program.

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These tasks do not read more linger permanently, and USCIS comprehends that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, in fact, they are ready to refute applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It is component of an appropriations expense that was established in 1992, and considering that then that program has actually been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiry in September.


The process takes a good while to develop a job and afterwards to obtain the financiers authorized. And they do not desire their cash streaming via until they have been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the development of projects.

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I would certainly such as to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It simply is a reality that many of the regional centers that are merging investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes sense.