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The program is put in a really weird and non-helpful governmental location for the excitement of international investment in the United States. We are providing away as well much for too tiny of a financial investment.


The regional centers, with their half-million plans, essentially damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to have to do with creating service entities, not easy financial investments. It must have to do with producing real jobs, not specify estimations regarding the indirect production of tasks, which is now component of the regulations.


Maybe that is among the reasons it has stopped working every year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with middlemen, both public and private. The program has even more than its share of detractions, which I will certainly enter into later on if anyone is interested.


This is an agency that loves to claim yes to applicants, but as the table in my testimony reveals, USCIS officers have a lot extra trouble with EB-5 applications than others. I assume that is something that no one has actually really discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas go to people that could not get them otherwise and to people whose planned financial investment is really much less, according to the Federal Get, than the average mean total assets of all American families in 2007. Allow me expand on one of my observations.


My quote based on the financiers' copyright applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not give the type of information that we can make use of on this.


So for each $100 of boosted foreign investment that year, the EB program added one penny. Under a far more shaky statistical base, the first applications of would-be immigrant investors, USCIS is telling journalists that the degree of investment in the just-concluded year was about $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 practice team.




Divine worked as Principal Advice of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Director. He has functioned thoroughly with the EB-5 program in private technique. He was elected, as I comprehend, vice head of state of the Organization to Invest in U.S.A., the nationwide sector organization of local.


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. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 ports were utilized, it would be 1 percent of the immigration every year to the USA. 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 regulations more clear and the procedures much more sensible and clear for the people who are arranging financial investments and for the investors who are investing, even more individuals have been eager and able to put effort and cash into the procedure to discover good tasks and establish them, and afterwards a lot more financiers have actually wanted to invest their money and take the danger and make use of the cash to produce the jobs that is the factor of the program.

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These tasks do not linger forever, and USCIS comprehends that and are trying to speed the program, speed up the process - 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 pointed out


The regional facility part of the program is not. It becomes part of an appropriations costs that was passed in 1992, and given that then that program has been extended 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 expiry in September.


The process takes a good while to work up a job and after that to obtain the capitalists authorized. And they do not want their cash moving through till they have been approved. And the specter of the expiry of this Regional Center Program in September is already discouraging the advancement of jobs.

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I would love to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million get more info or a million is a feature of the normal EB-5 legislation that is component of the code. It simply is a reality that many of the local centers that are pooling investments have set those in places of high joblessness or in country locations where half- million-dollar investments are enabled, and that makes sense.