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The program is put in a very strange and non-helpful bureaucratic location for the excitement of worldwide investment in the United States. We are offering away also much for as well small of an investment.


The regional facilities, with their half-million schemes, basically damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to be about producing organization entities, not easy financial investments. It should have to do with developing actual tasks, not elaborate computations concerning the indirect production of jobs, which is now part of the legislation.


Maybe that is one of the factors why it has actually fallen short every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with middlemen, both public and personal. The program has more than its share of detractions, which I will enter later if anyone is interested.


This is an agency that enjoys to say yes to applicants, but as the table in my testimony shows, USCIS officers have a lot a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually truly spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and permanently reason

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Seventh, in this program visas go to people that can not get them otherwise and to people whose scheduled investment is actually much less, according to the Federal Book, than the average mean total assets of all American families in 2007. Allow me broaden on among my observations.


My estimate based on the investors' permit applications submitted 2 years after the initial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not give the sort of information that we could utilize on this.


For every $100 of enhanced international financial investment that year, the EB program added one dime. Under a far more shaky analytical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the degree 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 listening to me. Chairman Leahy. He is the head of the company's migration technique team.




Divine acted as Principal Guidance of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year he said in which he was Acting Director, and after that Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive technique. He was chosen, as I comprehend, vice head of state of the Organization to Invest in USA, the nationwide market association of local.


Divine, we are happy to have you below. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and obtaining towards that. Specifically as USCIS, the agency that looks after the program, has been making the rules more clear and the processes a lot more sensible and clear for individuals that are organizing investments and for the investors who are investing, even more individuals have been prepared and able to place initiative and money into the procedure to discover great tasks and create them, and then a lot more capitalists have actually wanted to spend their money and take the danger and make use of the More Help cash to create the tasks that is the factor of the program.

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These projects do not linger permanently, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they are prepared to refute applications that are not qualifying. And they do so, as was pointed out


The regional facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and since then that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiry in September.


The process takes a great while to work up helpful resources a project and after that to get the financiers authorized. And they do not desire their money streaming through till they have been approved. And the specter of the expiry of this Regional Center Program in September is currently discouraging the advancement of projects.

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I would love to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 legislation that is component of the code. It just is a fact that many of the local facilities that are merging financial investments have actually established those in places of high unemployment or in rural locations where fifty percent- million-dollar investments are permitted, which makes sense.