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The program is put in a really odd and non-helpful bureaucratic location for the excitement of worldwide investment in the United States. We are giving away also much for as well little of an investment.


The local facilities, with their half-million schemes, basically damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must have to do with developing organization entities, not passive investments. It ought to have to do with producing genuine tasks, not clarify computations about the indirect development of tasks, which is now component of the regulations.


Possibly that is just one of the reasons that it has actually fallen short year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and personal. The program has greater than its share of scandals, which I will certainly enter later if any person is interested.


This is a company that likes to say yes to candidates, however as the table in my statement shows, USCIS police officers have far more problem with EB-5 applications than others. I assume that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to people that might not get them otherwise and to people whose scheduled financial investment is really less, according to the Federal Get, than the average mean web worth of all American family members in 2007. Let me broaden on one of my observations.


My price quote based on the financiers' permit applications filed 2 years after the first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not supply the type of data that we can utilize on this.


So for every $100 of enhanced foreign investment that year, the EB program contributed one dime. Under a far more wobbly analytical base, the preliminary applications of prospective immigrant financiers, USCIS More Bonuses is telling reporters that the degree of investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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




Divine served as Chief Advice of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Director. He has actually functioned extensively with the EB-5 program in exclusive technique. He was chosen, as I recognize, vice president of the Organization to Invest in U.S.A., the national industry association of local.


Divine, we are pleased to have you here. 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 U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks additional info for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is growing and obtaining toward that. Specifically as USCIS, the firm that supervises the program, has been making the regulations more clear and read the procedures extra sensible and clear for individuals who are organizing financial investments and for the investors who are investing, even more people have actually been eager and able to place initiative and cash right into the process to locate excellent tasks and create them, and afterwards much more financiers have been willing to spend their cash and take the danger and utilize the cash to produce 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 up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, actually, they prepare to reject applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It becomes part of an appropriations expense that was passed in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to develop a job and after that to obtain the financiers authorized. And they do not desire their money moving through up until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already inhibiting the growth of jobs.

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I want to clarify that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 law that is part of the code. It just is a truth that a lot of the local centers that are merging financial investments have set those in locations of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes feeling.