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The program is placed in a very odd and non-helpful administrative place for the stimulation of worldwide financial investment in the United States. We are providing away also much for also small of a financial investment.


The local centers, with their half-million schemes, essentially damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to be concerning creating business entities, not easy financial investments. It ought to have to do with creating actual jobs, not specify estimations about the indirect production of jobs, which is now part of the regulations.


Perhaps that is among the reasons why it has actually failed year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with middlemen, both public and exclusive. The program has more than its share of rumors, which I will enter into later on if any person is interested.


This is an agency that loves to state yes to candidates, but as the table in my statement shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually really chatted about much. 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 go to individuals who can not get them any type of other method and to individuals whose planned financial investment is actually less, according to the Federal Reserve, than the average mean net worth of all American family members in 2007. Let me increase on among my monitorings.


My estimate based on the investors' copyright applications filed 2 years after the initial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not supply the kind of data that we could use on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a far more unsteady statistical base, the initial applications of would-be immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year was concerning $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 migration technique team.




Divine functioned as Principal Counsel of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Performing Director, and then Acting Replacement Director. He has functioned thoroughly with the EB-5 program in exclusive technique. He was elected, as I understand, vice president of the Association to Invest in United States, the nationwide industry association of regional facilities.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 ports were utilized, it would be 1 percent of the migration EB5 Regional Center Program each year to the United States. It is not near that yet, yet it is growing and obtaining towards that. Particularly as USCIS, the firm that supervises the program, has been making the regulations more clear and the procedures extra sensible and clear for individuals that are organizing investments and for the capitalists who are spending, more individuals have actually been prepared and able to put effort and money into the process to locate good jobs and establish them, and after that much more financiers have agreed to spend their cash and take the danger and use the cash to develop the work that is the point of the program.

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These jobs do not wait about for life, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, in reality, they prepare to refute applications that are not qualifying. And they do so, as was discussed


The local facility component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to work up a project and after that to get the investors authorized. And they do not want their money flowing through up until they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is already preventing the advancement of projects.

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I would love to make clear that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 legislation that belongs to the code. It simply is a reality that a lot of the regional facilities that are pooling financial investments have actually established those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, and that makes good sense.