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


The local centers, with their half-million plans, basically damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to be concerning producing business entities, not easy investments. It needs to have to do with developing genuine work, not clarify calculations regarding the indirect creation of tasks, which is now part of the regulation.


Possibly that is just one of the reasons why it has stopped working every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will obtain into later on if anybody is interested.


This is a company that enjoys to say yes to applicants, yet as the table in my testimony reveals, USCIS officers have much extra difficulty with EB-5 applications than others. I assume that is something that nobody has really spoken around much. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever reason

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Seventh, in this program visas go to people who could not obtain them differently and to individuals whose scheduled financial investment is in fact much less, according to the Federal Get, than the typical mean web worth of all American households in 2007. Let me expand on among my monitorings.


My quote based on the financiers' eco-friendly card applications filed 2 years after the first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not offer the kind of information that we could utilize on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one dime. Under a much a lot more unsteady analytical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow 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 technique group.




Divine worked as Principal Advice of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Director. He has functioned thoroughly with the EB-5 program in exclusive method. He was chosen, as I understand, vice president of the Organization to Invest in USA, the national industry organization of local.


Divine, we are thrilled to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and obtaining towards that. Specifically as USCIS, the agency that manages the program, has actually been making the regulations clearer and the processes much more rational and clear for individuals that are arranging investments and for the investors who are spending, even more people have agreed and able to put initiative and money into the procedure to locate great jobs and develop them, and after that much more capitalists have actually wanted to spend their money and take the threat and make use of the money to develop the jobs that is the point of the program.

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These projects do not linger for life, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they are prepared to deny applications that are not qualifying. And they do so, as was pointed out


The regional facility component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and considering that then that website program has been expanded 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 day of expiration in September.


The procedure takes a good while to develop a project and then to get the investors approved. And they do not want their money streaming with till they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently preventing the advancement of projects.

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I wish 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 feature of the routine EB-5 legislation that becomes part of the code. It simply is a reality that many of the regional facilities that are pooling investments have actually set those instead of high joblessness or in country locations where fifty percent- million-dollar financial investments are permitted, which makes good sense.