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First, the program is positioned in a very odd and non-helpful administrative place for the stimulation of global investment in the USA. Second, its range is all wrong. We are giving away way too much for as well tiny of a financial investment. Additionally, elevating financial backing half a million dollars a tranche is, to say the least, ineffective.


The regional centers, with their half-million systems, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with creating service entities, not easy financial investments. It ought to be about creating actual tasks, not elaborate estimations regarding the indirect development of jobs, which is currently part of the regulation.


Possibly that is one of the reasons it has failed every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also loaded with intermediaries, both public and private. The program has greater than its share of rumors, which I will enter into later on if any person is interested.


This is a company that enjoys to claim yes to applicants, yet as the table in my testimony reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that no one has truly talked around a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever factor

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Seventh, in this program visas go to individuals who might not get them differently and to people whose organized investment is actually less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Allow me broaden on among my monitorings.


My estimate based upon the investors' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not supply the type of information that we might utilize on this.


For every $100 of increased international financial investment that year, the EB program added one dime. Under a far more unsteady analytical base, the initial applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. more information 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 team.




Divine functioned as Principal Advise of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Deputy Director. He has functioned thoroughly with the EB-5 program in private method. He was chosen, as I comprehend, vice president of the Organization to Invest in U.S.A., the national sector association of local.


Divine, we are happy to have you below. Please go on, sir. 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, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were utilized, it would be 1 percent of the migration annually to the United States. It is not near that yet, yet it is growing and obtaining towards that. Specifically as USCIS, the company that oversees the program, has been making the rules clearer and the processes more rational and clear for the people who are arranging financial investments and for the capitalists who are spending, even more people have actually been ready and able to place effort and money right into the process to discover excellent tasks and establish them, and after that much more capitalists have agreed to invest their cash and take the risk and use the cash to develop the work that is the factor of the program.

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These projects do not wait around permanently, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, actually, they prepare to refute applications that are not read the article qualifying. And they do so, as was pointed out


The local center component of the program is not. It belongs to an appropriations costs that was passed in 1992, and because then that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiry in September.


The process takes a great while to develop a task and after that to obtain the financiers approved. And they do not desire their money streaming through till they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of projects.

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I want to clear up that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It simply is a truth that the Look At This majority of the regional centers that are pooling investments have established those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, and that makes good sense.