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The program is put in a really odd and non-helpful governmental location for the stimulation of international financial investment in the United States. Second, its scale is all incorrect. We are distributing also much for also tiny of a financial investment. Better, elevating endeavor funding fifty percent a million bucks a tranche is, to state the least, ineffective.


The local centers, with their half-million systems, essentially undercut the extra sensible 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 developing service entities, not passive investments. It should be about creating actual jobs, not clarify computations about the indirect production of work, which is currently part of the legislation.


Maybe that is one of the reasons why it has failed year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also full of intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will certainly get involved in later on if anybody is interested.


This is a firm that loves to state yes to candidates, but as the table in my testimony shows, USCIS officers have far more trouble with EB-5 applications than others. I believe that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas most likely to people that could not get them any various other method and to people whose planned financial investment is really less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Let me increase on one of my observations.


My quote based upon the capitalists' eco-friendly card applications submitted 2 years after the very first financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not provide the sort of information that we might use on this.


For every $100 of increased international financial investment that year, the EB program added one dime. Under her response a much more shaky analytical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's immigration technique team.




Divine worked as Chief Advice of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has worked extensively with the EB-5 program in personal technique. He was elected, as I understand, vice head of state of the Organization to Buy USA, the nationwide market association of regional centers.


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


At a lot of, if all 10,000 slots were used, it would be 1 percent of the migration every year to the United States. It is not near that yet, yet it is expanding and getting towards that. Specifically as USCIS, the agency that manages the program, has been click now making the rules more clear and the procedures more logical and clear for individuals who are arranging investments and for the financiers who are spending, more people have actually wanted and able to put initiative and money into the procedure to discover excellent jobs and create them, and after that much more financiers have been willing to invest their money and take the danger and utilize the cash to produce the tasks that is the point of the program.

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These tasks do not wait around for life, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The regional facility component of the program is not. It is part of an appropriations bill special info that was enacted in 1992, and because then that program has actually been extended 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 expiry in September.


The procedure takes a great while to develop a job and then to obtain the capitalists accepted. And they do not want their money flowing via till they have been accepted. And the specter of the expiry of this Regional Center Program in September is already discouraging the advancement of projects.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 regulation that belongs to the code. It simply is a reality that a lot of the local centers that are pooling financial investments have actually set those instead of high joblessness or in country areas where half- million-dollar financial investments are allowed, which makes good sense.