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The program is put in a very weird and non-helpful administrative area for the stimulation of global investment in the United States. We are offering away too much for as well tiny of an investment.


The regional centers, with their half-million plans, basically damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, need to have to do with developing business entities, not passive financial investments. It should be about creating actual jobs, not specify calculations about the indirect development of work, which is currently component of the regulation.


Perhaps that is one of the reasons why it has failed year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well filled up with middlemen, both public and private. The program has more than its share of rumors, which I will certainly enter into later on if anybody is interested.


This is an agency that loves to claim yes to candidates, however as the table in my statement shows, USCIS officers have a lot a lot more trouble with EB-5 applications than others. I think that is something that no one has actually truly spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals that could not obtain them any kind of other method and to people whose scheduled investment is in fact less, according to the Federal Book, than the ordinary mean net well worth of all American families in 2007. Let me broaden on among my observations.


My quote based upon the investors' permit applications submitted 2 years after the first investment-- these are the strong 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 supply the sort of data that we might 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 unsteady statistical base, the initial applications of prospective immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. Chairman their explanation Leahy. He is the head of the firm's migration method team.




Divine acted as Principal Counsel of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Supervisor. He has worked extensively with the EB-5 program in private method. He was elected, as I comprehend, vice president of the Association to Invest in USA, the nationwide sector 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. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were utilized, it would be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding Discover More and getting toward that. Specifically as USCIS, the company that manages the program, has actually been making the policies clearer and the processes much more rational and clear for individuals that are arranging investments and for the investors that are spending, more individuals have been willing and able to place effort and money right into the process to find excellent jobs and establish them, and then much more capitalists have actually wanted to spend their cash and take the risk and use the cash to produce the work that is the factor of the program.

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These tasks do not wait around permanently, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, as a matter of fact, they are prepared to refute applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It is part of an appropriations expense 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 irreversible, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a great while to function up a job and after that to obtain the financiers authorized. And they do not want their money flowing through until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently preventing the advancement of tasks.

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I want to clarify that the Regional Facility Program is not the exact same as the half-million-dollar point. The a knockout post concept of half a million or a million is a function of the normal EB-5 regulation that becomes part of the code. It simply is a reality that many of the regional facilities that are pooling financial investments have established those instead of high joblessness or in rural locations where half- million-dollar financial investments are enabled, which makes good sense.