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The program is placed in a really strange and non-helpful bureaucratic place for the excitement of global investment in the United States. Second, its scale is all wrong. We are handing out excessive for also tiny of an investment. Better, raising equity capital fifty percent a million bucks a tranche is, to claim the least, ineffective.


The regional centers, with their half-million plans, basically damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should be concerning creating service entities, not passive financial investments. It must be regarding producing genuine work, not elaborate computations about the indirect development of tasks, which is now part of the regulations.


Perhaps that is just one of the reasons that it has actually fallen short time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with middlemen, both public and exclusive. The program has more than its share of detractions, which I will certainly obtain right into later if anyone is interested.


This is an agency that likes to say yes to candidates, but as the table in my testimony shows, USCIS policemans have far more problem with EB-5 applications than others. I think that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals who might not get them otherwise and to individuals whose organized investment is in fact much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Let me broaden on one of my observations.


My price quote based upon the investors' eco-friendly card applications filed 2 years after the first investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not provide the type of data that we could make use of on this.


For every $100 of boosted foreign financial investment that year, the EB program added one dime. Under a far more unsteady analytical base, the preliminary applications of prospective immigrant financiers, USCIS is informing journalists that the degree of financial 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 immigration technique group.




Divine offered as Chief Advise of the USA Citizenship and Immigration Solutions from July 2004 up until November get redirected here 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has actually functioned extensively with the EB-5 program in personal method. He was chosen, as I understand, vice head of state of the Association to Invest in USA, the nationwide sector association of regional centers.


Divine, we are thrilled to have you here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is growing and obtaining towards that. Specifically as USCIS, the firm that manages the program, has been making the rules clearer and the procedures extra rational and clear for individuals who are arranging investments and for the capitalists who are spending, more people have actually been ready and able to put effort and money right into the process to discover good tasks and develop them, and after that much more financiers have agreed to invest their money and take the risk and use the money to develop the jobs review that is the point of the program.

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These jobs do not wait about permanently, and USCIS recognizes that and are attempting 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 prepare to reject applications that are not qualifying. And they do so, as was discussed


The regional facility part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be irreversible, and it look at more info requires to be done now and not nearer to the date of expiry in September.


The process takes a great while to develop a task and after that to obtain the financiers accepted. And they do not desire their money streaming with up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already preventing the growth of projects.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 legislation that is part of the code. It just is a truth that the majority of the local facilities that are merging investments have actually established those instead of high unemployment or in country locations where half- million-dollar financial investments are enabled, and that makes sense.