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First, the program is put in a very odd and non-helpful administrative area for the stimulation of worldwide financial investment in the United States. Second, its scale is all wrong. We are handing out excessive for also small of an investment. Even more, increasing endeavor capital half a million dollars a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million systems, essentially damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must be about developing organization entities, not passive investments. It should be concerning producing actual jobs, not elaborate estimations regarding the indirect production of jobs, which is currently part of the regulation.


Probably that is one of the factors why it has actually fallen short every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of intermediaries, both public and private. The program has even more than its share of scandals, which I will enter into later on if anybody is interested.


This is an agency that likes to say yes to applicants, however as the table in my testament shows, USCIS police officers have far more problem with EB-5 applications than others. I assume that is something that no one has truly talked about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for excellent reason

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Seventh, in this program visas go to people who can not obtain them any type of various other means and to individuals whose planned investment is really less, according to the Federal Get, than the typical mean internet well worth of all American households in 2007. Allow me increase on one of my monitorings.


My quote based upon the capitalists' permit applications submitted 2 years after the first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not give the sort of data that we could use on this.


For every $100 of enhanced foreign financial investment that year, the EB program added one penny. Under a much a lot more wobbly statistical base, the first applications of prospective immigrant capitalists, USCIS is informing journalists that the degree of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the company's migration practice group.




Divine acted as Principal Guidance of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in personal practice. He was elected, as I understand, vice president of the Organization to Spend in U.S.A., the national market 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 United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is growing and getting towards that. Particularly as USCIS, the company that looks after the program, has been making the guidelines more clear and the procedures a lot more sensible and clear for the individuals who are arranging financial investments and for the financiers that are spending, more people have actually agreed and able to put effort and cash into the procedure to find good jobs and establish them, and after that extra financiers have been ready to invest their cash and take the threat and utilize the cash to produce the jobs that is the point of the program.

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These jobs do not linger forever, and USCIS recognizes that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes a great while to work up a task and after that to get the investors authorized. And they do not want their money streaming via till they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the growth of tasks.

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I would love to make clear that the Regional Facility Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a feature of the click here routine EB-5 law that is part of the code. It simply is a fact that the majority of the regional facilities that are pooling investments have established those in places of high unemployment or in rural areas where half- million-dollar financial investments are enabled, and that makes good sense.