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The program is put in an extremely odd and non-helpful governmental place for the excitement of international financial investment in the United States. We are giving away also much for too tiny of an investment.

The local facilities, with their half-million systems, essentially undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to be regarding producing company entities, not passive investments. It ought to have to do with creating real jobs, not elaborate calculations concerning the indirect creation of tasks, which is currently component of the regulations.


Maybe that is among the reasons that 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 awkward, and the program is also full of middlemen, both public and private. The program has more than its share of rumors, which I will certainly obtain into later on if any person is interested.


This is an agency that likes to claim yes to applicants, however as the table in my testimony shows, USCIS police officers have far more problem with EB-5 applications than others. I believe that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and completely factor

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


My quote based upon the capitalists' permit applications submitted 2 years after the first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the kind of data that we might make use of on this.


For every $100 of boosted international financial investment that year, the EB program added one penny. Under a far more unsteady analytical base, the first applications of potential immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year was concerning $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 firm's immigration method team.

Divine offered as Chief Guidance of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which Continue he was Performing Director, and afterwards Acting Replacement Director. He has worked thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice head of state of the Organization to Spend in USA, the national market association of local facilities.


Divine, we are delighted to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator 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 annually to the United States. It is not near that yet, however it is growing and getting toward that. Especially as USCIS, the company that looks after the program, has been making the rules clearer and the procedures much more rational and clear for individuals that are organizing financial investments and for the investors who are investing, more individuals have actually been ready and able to place effort and cash right into the procedure to find excellent jobs and establish them, and afterwards a lot more financiers have been eager to invest their cash and take the threat and use 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 comprehends that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, in truth, they prepare to reject applications that are not qualifying. And they do so, as was stated

The local facility component of the program is not. It becomes part of an appropriations expense that was passed in 1992, and because then that program has actually been expanded five 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 expiry in September.


The process takes a great while to develop a project and after that to more tips here obtain the financiers approved. And they do not desire their cash moving via until they have been approved. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of jobs.

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I wish to clarify that the Regional Center Program is not Check This Out the exact same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 legislation that becomes part of the code. It simply is a truth that most of the regional facilities that are pooling financial investments have established those in locations of high joblessness or in backwoods where fifty percent- million-dollar investments are permitted, which makes sense.