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The program is placed in an extremely weird and non-helpful bureaucratic location for the stimulation of global financial investment in the United States. We are giving away also much for too tiny of a financial investment.


The local facilities, with their half-million systems, basically undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to have to do with developing company entities, not easy financial investments. It must be about developing genuine tasks, not elaborate computations regarding the indirect development of jobs, which is currently component of the regulations.


Perhaps that is just one of the reasons it has failed year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too filled with intermediaries, both public and private. The program has greater than its share of rumors, which I will enter later if anyone is interested.


This is a firm that loves to state yes to candidates, however as the table in my testimony reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has truly spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently reason

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Seventh, in this program visas go to people that can not obtain them differently and to people whose organized investment is really much less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me expand on one of my observations.


My quote based on the capitalists' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not give the kind of information that we might make use of on this.


So for every $100 of boosted international investment that year, the EB program contributed one penny. Under a far more unsteady analytical base, the initial applications of prospective immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $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 practice group.




Divine functioned as Chief Advise of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was chosen, as I comprehend, vice president of the Organization to Invest in United States, the nationwide market association of local facilities.


Divine, we are pleased to have you here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration each year to the United States. 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 been making the policies more clear and the processes a lot more logical and clear for the individuals who are arranging financial investments and for the investors that are spending, more individuals have actually wanted and able to place effort and cash right into the process to discover great tasks and establish them, and afterwards a lot more investors have been eager to spend their cash and take the threat and use the cash to create the work that is the factor of the program.

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These jobs do not wait around permanently, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, actually, they are prepared to refute applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It belongs to an appropriations bill that was established in 1992, and click here ever since that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to develop a job and afterwards to get the investors accepted. And they do not desire their money flowing through until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the advancement of jobs.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 regulation that belongs to the code. It just is a truth that most of the regional centers that are merging investments have set those in locations of high unemployment or in country areas where fifty percent- million-dollar financial investments are permitted, which makes feeling.