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The program is positioned in a very weird and non-helpful bureaucratic area for the excitement of global investment in the United States. We are offering away as well much for also tiny of a financial investment.


The local centers, with their half-million systems, essentially undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to be concerning creating service entities, not easy investments. It needs to be about producing genuine work, not specify calculations about the indirect production of tasks, which is currently part of the legislation.


Probably that is one of the reasons that it has stopped working time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also full of intermediaries, both public and private. The program has more than its share of scandals, which I will certainly enter later on if anybody is interested.


This is a company that loves to state yes to candidates, yet as the table in my testimony reveals, USCIS policemans have a lot more problem with EB-5 applications than others. I think that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and for great reason

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Seventh, in this program visas go to people that can not obtain them otherwise and to individuals whose scheduled financial investment is in fact much less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Allow me expand on one of my observations.


My estimate based on the investors' copyright applications filed 2 years after the very first investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not give the sort of data that we could make use of on this.


So for every single $100 of raised international investment that year, the EB program contributed one dime. Under a far more shaky statistical base, the first applications of potential immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year was regarding $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 group.




Divine functioned as Chief Guidance of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state of the Organization to Invest in U.S.A., the nationwide sector organization of regional facilities.


Divine, we are happy to have you right here. Please proceed, sir. DECLARATION 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, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, however it is expanding and obtaining check my source toward that. Especially as USCIS, the agency that manages the program, has actually been making the guidelines more clear and the procedures a lot more logical and clear for the individuals who are arranging financial investments and for the capitalists that are investing, even more people have actually agreed and able to put initiative and money right into the procedure to find great projects and establish them, and then a lot more visit this page capitalists have wanted to invest their cash and take the risk and use the cash to develop the jobs that is the point of the program.

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These projects do not wait about permanently, and USCIS recognizes that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not imply 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 mentioned


The regional center part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to function up a project and then to obtain the financiers accepted. And they do not want their money streaming with till they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the advancement of tasks.

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I would such as to make clear that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 legislation that is part of the code. It useful link simply is a truth that a lot of the regional centers that are merging financial investments have actually established those in areas of high joblessness or in backwoods where fifty percent- million-dollar investments are allowed, and that makes sense.