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The program is placed in a very strange and non-helpful administrative place for the excitement of international investment in the United States. Second, its range is all wrong. We are providing away way too much for as well small of a financial investment. Even more, elevating equity capital fifty percent a million bucks a tranche is, to say the least, ineffective.


The local centers, with their half-million plans, basically undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to be regarding developing service entities, not passive investments. It ought to have to do with creating actual jobs, not clarify estimations about the indirect development of tasks, which is currently part of the legislation.


Maybe that is one of the reasons why it has fallen short year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with intermediaries, both public and personal. The program has greater than its share of scandals, which I will enter later on if any person is interested.


This is a company that enjoys to state yes to applicants, but as the table in my testimony reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I think that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for good reason

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Seventh, in this program visas most likely to individuals that can not obtain them otherwise and to individuals whose scheduled investment is actually much less, according to the Federal Reserve, than the ordinary mean net well worth of all American households in 2007. Let me increase on among my monitorings.


My price quote based on the financiers' environment-friendly card applications filed 2 years after the initial financial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not provide the sort of information that we can use on this.


So for every $100 of increased international financial investment that year, the EB program contributed one cent. Under a far more unsteady statistical base, the first applications of would-be immigrant capitalists, USCIS is informing journalists that the degree 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 method group.




Divine worked as Chief Advise of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has actually functioned extensively with the EB-5 program in personal method. He was elected, as I recognize, vice president of the Organization to Invest in U.S.A., the national industry organization of regional.


Divine, we are thrilled to have you right here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, a fantastic read DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY 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 ports were utilized, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is expanding and obtaining towards that. Particularly as USCIS, the agency that looks after the program, has actually been making the policies more clear and the procedures more rational and clear for individuals that are organizing investments and for the investors who are spending, even more individuals have agreed and able to put initiative and money into the process to find excellent tasks and develop them, and afterwards a lot more financiers have wanted to invest their cash and take the danger and make use of the cash to produce the work that is the point of the program.

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These projects do not linger for life, and USCIS a knockout post recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional facility component of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a great while to develop a task and afterwards to get the investors authorized. And they do not desire their money flowing with till they have been approved. And the specter of the visit our website expiry of this Regional Facility Program in September is currently preventing the development of jobs.

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I want to clarify 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 function of the regular EB-5 law that is part of the code. It simply is a truth that a lot of the local facilities that are merging financial investments have actually set those instead of high unemployment or in rural areas where fifty percent- million-dollar investments are allowed, which makes good sense.