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The program is placed in an extremely odd and non-helpful bureaucratic location for the stimulation of international financial investment in the United States. Second, its scale is all wrong. We are offering away excessive for too little of an investment. Additionally, elevating equity capital fifty percent a million bucks a tranche is, to state the least, ineffective.

The regional facilities, 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 all, as they do in Australia, need to have to do with creating company entities, not passive financial investments. It should have to do with developing actual work, not specify computations concerning the indirect production of tasks, which is currently part of the legislation.


Maybe that is among the factors why it has actually failed year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too filled up with intermediaries, both public and private. The program has greater than its share of rumors, which I will get involved in later if anyone is interested.


This is an agency that loves to claim yes to candidates, yet as the table in my statement shows, USCIS police officers have a lot more problem with EB-5 applications than others. I think that is something that nobody has actually chatted around a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and forever factor

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Seventh, in this program visas go to individuals that could not get them differently and to individuals whose planned financial investment is actually much less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Allow me expand on among my monitorings.


My quote based on the investors' permit applications filed 2 years after the initial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not provide the kind of data that we might make use of on this.


So for every single $100 of raised foreign financial investment that year, the EB program added one penny. Under a a lot more unsteady statistical base, the preliminary applications of prospective immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $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 method group.

Divine acted as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has functioned extensively with the EB-5 program in exclusive practice. He was elected, as I recognize, vice president of the Organization to Spend in U.S.A., the nationwide sector organization of regional.


Divine, we are happy to have you below. Please proceed, sir. STATEMENT 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. Thank you for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the firm that supervises the program, has been making the policies more clear and the processes more logical and clear for the people that are organizing financial investments and for the financiers who are spending, more individuals have EB5 Regional Center Program been eager and able to place initiative and cash right into the process to discover great tasks and develop them, and after that much more capitalists have actually agreed to spend their money and take the threat and make use of the cash to develop the jobs that is the point of the program.

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These tasks do not linger for life, and USCIS comprehends that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was stated

The local center part of the program is not. It belongs to an appropriations expense that was established in 1992, and given that then that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to develop a project and then to get the investors approved. And they do not desire their cash flowing via up until they have been authorized. And the specter of the expiry of this Regional Center Program in September is already dissuading the advancement of tasks.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 law that is part of the code. It simply is a reality that the majority of the regional centers that are pooling investments have set those instead of high joblessness or in rural areas where half- million-dollar investments are enabled, and that makes sense.