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The program is put in a very strange and non-helpful bureaucratic location for the stimulation of global investment in the United States. Second, its range is all incorrect. We are handing out excessive for as well small of a financial investment. Additionally, elevating financial backing half a million dollars a tranche is, to say the least, ineffective.


The local facilities, with their half-million schemes, essentially damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to have to do with producing company entities, not easy investments. It ought to have to do with developing real jobs, not elaborate estimations concerning the indirect creation of work, which is now part of the regulations.


Perhaps that is among the reasons that it has actually fallen short every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also loaded with intermediaries, both public and exclusive. The program has more than its share of rumors, which I will certainly enter later on if anyone is interested.


This is a firm that likes to claim yes to applicants, however as the table in my statement shows, USCIS police officers have far more trouble with EB-5 applications than others. I think that is something that nobody has actually actually discussed a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever reason

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Seventh, in this program visas most likely to people who could not get them any type of other means and to people whose scheduled financial investment is in fact less, according to the Federal Get, than the ordinary mean internet worth of all American families in 2007. Let me increase on one of my observations.


My estimate based on the investors' environment-friendly card applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not supply the kind of information that we could utilize on this.


So for each $100 of enhanced foreign investment that year, the EB program contributed one penny. Under a much more shaky analytical base, the preliminary applications of potential immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's immigration practice team.




Divine worked as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in exclusive practice. He was chosen, as I understand, vice head of state of the Organization to Invest in United States, the nationwide market association of local.


Divine, we are pleased to have you right here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for visit here having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and getting towards that. Especially as USCIS, the company that manages the program, has actually been making the regulations more clear and the processes extra rational and clear for individuals that are organizing financial investments and for the capitalists who are spending, more people have been ready and able to place initiative and cash right into the procedure to find excellent projects and create them, and afterwards more financiers have agreed to spend their money and take the threat and use the cash to develop the work that is the factor of the program.

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These jobs do not linger forever, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, in reality, they prepare to deny applications that are not certifying. And they do so, as was discussed


The local facility part of the program is not. It is component of an appropriations bill that was established in 1992, and because then that program has been extended five times for 19 years. It is time for it to be click this link permanent, and it requires to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to work up a task and afterwards to obtain the investors approved. And they do not desire their cash streaming with until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently published here discouraging the advancement of tasks.

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I want to clarify 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 normal EB-5 regulation that belongs to the code. It just is a fact that the majority of the regional facilities that are merging investments have actually established those in locations of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes good sense.