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


The local facilities, with their half-million plans, basically undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, need to be concerning producing service entities, not easy financial investments. It needs to have to do with producing real jobs, not specify calculations concerning the indirect creation of jobs, which is now component of the regulations.


Probably that is among the reasons that it has actually fallen short time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with intermediaries, both public and personal. The program has even more than its share of scandals, which I will certainly enter into later on if anybody is interested.


This is a firm that likes to state yes to applicants, yet as the table in my statement reveals, USCIS police officers have a lot more problem with EB-5 applications than others. I assume that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals that can not get them differently and to individuals whose planned investment is actually much less, according to the Federal Book, than the average mean net worth of all American family members in 2007. Let me broaden on one of my monitorings.


My estimate based upon the capitalists' permit applications filed 2 years after the first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not provide the sort of information that we can make use of on this.


So for every single $100 of raised foreign financial investment that year, the EB program added one dime. Under next page a far more unsteady analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Let us approve that.

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




Divine acted as Principal Counsel of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program in exclusive technique. He was chosen, as I understand, vice head of state of the Association to Invest in United States, the nationwide industry organization of local.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, 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.


At a lot of, if all 10,000 slots were used, it would be 1 percent of the migration yearly to the United States. It is not near that yet, yet it is expanding and getting toward that. Particularly as USCIS, the company that oversees the program, has actually been making the policies more clear and the procedures much more reasonable and clear for the individuals who are arranging investments and for the investors that are spending, even more individuals have been prepared and able to place initiative and money into the process to discover great jobs and create them, and afterwards much more capitalists have agreed to invest their cash and take the threat look at here now and use the cash to produce the tasks that is the point of the program.

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These jobs do not wait around permanently, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, actually, they are all set to refute applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and because then that program has been extended 5 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 process takes a great while to develop a job and afterwards to obtain the investors authorized. And they do not want their cash streaming through until they have been authorized. And the specter of the expiry top article of this Regional Facility Program in September is currently dissuading the growth of projects.

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I wish to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 law that becomes part of the code. It just is a reality that the majority of the regional facilities that are pooling investments have actually established those in locations of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes sense.