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Initially, the program is positioned in an extremely odd and non-helpful administrative place for the stimulation of global investment in the USA. Second, its range is all wrong. We are distributing way too much for also small of a financial investment. Additionally, raising financial backing fifty percent a million dollars a tranche is, to claim the least, inefficient.


The local facilities, with their half-million plans, basically damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with producing service entities, not passive investments. It ought to have to do with producing genuine tasks, not clarify computations regarding the indirect development of tasks, which is now component of the regulations.


Maybe that is just one of the reasons why it has failed year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with intermediaries, both public and personal. The program has greater than its share of rumors, which I will get involved in later if anybody is interested.


This is a firm that likes to say yes to candidates, however 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 no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever factor

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Seventh, in this program visas go to individuals who might not obtain them otherwise and to individuals whose scheduled investment is in fact less, according to the Federal Book, than the ordinary mean net worth of all American family members in 2007. Let me increase on one of my observations.


My price quote based on the capitalists' permit applications filed 2 years after the first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not supply the kind of data that we can utilize on this.


For every $100 of enhanced foreign investment that year, the EB program contributed one cent. Under a far more wobbly statistical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the level of financial investment in the EB5 Regional Center Program just-concluded year was concerning $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 firm's immigration method group.




Divine worked as Principal Counsel of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Director. He has functioned thoroughly with the EB-5 program secretive method. He was chosen, as I comprehend, vice president of the Association to Purchase United States, the national market association of local centers.


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


At many, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and getting toward that. Especially as USCIS, the firm that looks after the program, has actually been making the rules clearer and the processes more rational and clear for the people who are arranging financial investments and for the financiers who are investing, more individuals have actually agreed and able to place effort and money right into the procedure to discover great projects and develop them, and after that more financiers have actually agreed to spend their money and take the risk and make use of the money to create the tasks that is the point of the program.

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These tasks do not wait around forever, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was mentioned


The local facility component of the program is not. It is component of an appropriations expense that was passed in 1992, and given that then that program has actually been expanded 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 date of expiration in September.


The process takes a good while to function up a job and after that to get 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 currently preventing the development of tasks.

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I would love to clear up that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 regulation that becomes part of the code. It just is a fact that the majority of the local centers that are merging investments have actually set those instead of high joblessness or in country areas where half- million-dollar investments are permitted, and that makes good sense.