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The program is put in a very weird and non-helpful administrative area for the stimulation of international investment in the United States. Second, its scale is all incorrect. We are handing out as well much for also little of an investment. Additionally, raising financial backing fifty percent a million dollars a tranche is, to say the least, ineffective.


The regional facilities, with their half-million systems, essentially undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must be about creating business entities, not passive investments. It needs to be concerning creating real tasks, not clarify calculations about the indirect development of tasks, which is currently part of the regulation.


Probably that is among the reasons that it has actually fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also loaded with middlemen, both public and private. The program has greater than its share of scandals, which I will get right into later if anybody is interested.


This is a company that loves to say yes to candidates, however as the table in my statement reveals, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that nobody has actually actually talked around much. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently factor

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Seventh, in this program visas most likely to people that could not get them differently and to people whose organized financial investment is in fact less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Allow me expand on one of my monitorings.


My quote based upon the capitalists' environment-friendly card applications filed 2 years after the initial financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not supply the kind of data that we can use on this.


So for every $100 of raised foreign financial investment that year, the EB program contributed one penny. Under a much extra wobbly statistical base, the initial applications of potential immigrant investors, USCIS is telling reporters that the level 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 practice group.




Divine acted as Chief Advise of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Director. He has functioned extensively with the EB-5 program secretive practice. He was elected, as I recognize, vice head of state of the Organization to Purchase United States, the nationwide sector association of regional facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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, Senator Grassley, and others.


At their explanation many, if all 10,000 slots were made use of, it would be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is growing and obtaining towards that. Specifically as USCIS, the company that manages the program, has actually been making the regulations more clear and the processes more reasonable and clear for the individuals that are organizing financial investments and for the investors that are spending, more people have agreed and able to place effort and cash into the process to find great jobs and establish them, and after that more capitalists have actually agreed to invest their money and take the risk and make use of the cash to develop the jobs that is the factor of the program.

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These tasks do not wait about forever, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was discussed


The regional facility part of the program is not. It is part look at this now of an appropriations expense 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 permanent, and it needs to be done now and not nearer to the day of expiry in September.


The process takes a great while to develop a task and after that to obtain the capitalists approved. And they do not want their cash streaming via till they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the advancement of tasks.

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I would love to clear read this post here up that the Regional Center Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It simply is a reality that a lot of the regional centers that are merging investments have actually set those instead of high unemployment or in country locations where half- million-dollar financial investments are permitted, and that makes good sense.