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The program is placed in a really strange and non-helpful bureaucratic place for the excitement of international financial investment in the United States. We are providing away also much for too little of a financial investment.


The local centers, with their half-million systems, basically undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should be about creating organization entities, not passive investments. It must be about developing genuine jobs, not elaborate estimations regarding the indirect creation of work, which is now part of the regulation.


Probably that is among the reasons it has actually failed time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with middlemen, both public and exclusive. The program has more than its share of scandals, which I will certainly enter later if anyone is interested.


This is an agency that enjoys to claim yes to candidates, yet as the table in my statement reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually really spoken around much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever factor

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Seventh, in this program visas most likely to people who can not obtain them any kind of various other means and to individuals whose scheduled financial investment is actually less, according to the Federal Get, than the average mean net worth of all American households in 2007. Let me increase on among my observations.


My estimate based upon the capitalists' environment-friendly card applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not give the kind of data that we might utilize on this.


For every $100 of increased foreign financial investment that year, the EB program added one penny. Under a far more unsteady analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling journalists that the level 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 immigration method team.




Divine worked as Principal Advise of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Performing Replacement Director. He has worked extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice president of the Association to Purchase U.S.A., the national industry association of local facilities.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the firm that looks after the program, has been making the guidelines clearer and the processes a lot more sensible and clear for the people who are organizing financial investments and for the capitalists who are investing, more individuals have wanted and able to put effort and money into the procedure to find good projects and establish them, and afterwards much more financiers have actually been eager to invest their money and take the danger and utilize the money to produce the jobs that is the point of the program.

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These jobs do not linger for life, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It belongs to an appropriations costs that was established in 1992, and considering that then that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes an here excellent while to work up a project and afterwards to get the capitalists approved. And they do not want their money flowing with till they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already preventing the growth of projects.

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I want to make clear that the Regional Center 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 regulation that is component of the code. It just is a fact that the majority of the local centers that are merging investments have established those instead of high unemployment or in backwoods where half- million-dollar investments are enabled, and that makes sense.