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The program is placed in an extremely odd and non-helpful administrative place for the stimulation of international financial investment in the United States. We are offering away too much for as well tiny of an investment.


The regional facilities, with their half-million systems, essentially damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to be concerning creating company entities, not easy financial investments. It should be about producing actual jobs, not specify computations concerning the indirect production of jobs, which is now part of the regulation.


Possibly that is among the reasons it has stopped working time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well full of middlemen, both public and personal. The program has greater than its share of scandals, which I will enter later if anyone is interested.


This is a firm that likes to state yes to candidates, but as the table in my testimony reveals, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to people who can not get them otherwise and to individuals whose organized investment is in fact less, according to the Federal Get, than the typical mean web well worth of all American family members in 2007. Let me increase on one of my observations.


My price quote based on the financiers' permit applications submitted 2 years after the first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the sort of information that we can utilize on this.


For every $100 of boosted international investment that year, the EB program added one cent. Under a much more wobbly statistical base, the preliminary applications of prospective immigrant investors, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the company's migration method team.




Divine functioned as Principal Counsel of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Supervisor. He has worked extensively with the EB-5 program in personal technique. He was chosen, as I understand, vice president of the Association to Invest in U.S.A., the nationwide industry organization of regional.


STATEMENT 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, Legislator Grassley, and others.


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is expanding and getting toward that. Particularly as USCIS, the company that oversees the program, has actually been making the regulations clearer and the procedures a lot more logical and clear for individuals that are arranging financial investments and for the capitalists that are investing, even more people have agreed and able to put effort and cash right into the procedure to locate great tasks and create them, and then a lot more investors have wanted to invest their cash and take the danger and utilize the money to create the work that is the factor of the program.

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These projects do not wait around forever, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in reality, they are prepared to deny applications that are not certifying. And they do so, as was pointed out


The local facility component of the program is not. It belongs to an appropriations costs that was you could try this out enacted in 1992, and because my response then that program has been prolonged 5 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 obtain the investors approved. And they do not desire their cash streaming with up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already dissuading the advancement of projects.

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I wish to clear up that the Regional Center Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 regulation that is part of the code. It simply is a reality that the majority of the local centers that are merging financial investments have actually established those instead of high joblessness or in backwoods where half- million-dollar investments anonymous are permitted, and that makes feeling.