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Initially, the program is positioned in a really strange and non-helpful bureaucratic place for the excitement of global financial investment in the USA. Second, its range is all wrong. We are giving away excessive for as well small of a financial investment. Even more, raising equity capital half a million dollars a tranche is, to claim the least, ineffective.


The regional centers, with their half-million plans, basically damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to have to do with producing company entities, not passive investments. It ought to have to do with developing real jobs, not clarify computations about the indirect production of tasks, which is currently part of the regulation.


Perhaps that is one of the reasons it has stopped working time after time to get to the legal goal 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 get into later if anybody is interested.


This is an agency that enjoys to claim yes to applicants, however as the table in my statement shows, USCIS police officers have a lot a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely reason

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Seventh, in this program visas go to individuals that could not obtain them otherwise and to people whose scheduled investment is really less, according to the Federal Book, than the ordinary mean net well worth of all American family members in 2007. Allow me broaden on among my observations.


My quote based upon the capitalists' permit applications filed 2 years after the very first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not offer the kind of data that we might make use of on this.


So for every $100 of increased international financial investment that year, the EB program contributed one penny. Under a a lot more shaky statistical base, the preliminary applications of prospective immigrant investors, USCIS is telling 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 Leahy. He is Visit This Link the head of the firm's migration technique group.




Divine worked as Principal Guidance of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. He has functioned thoroughly with the EB-5 program in private practice. He was chosen, as I recognize, vice president of the Organization to Spend in USA, the national industry association of regional.


Divine, we are pleased to have you right here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, i thought about this BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Particularly as USCIS, the agency that supervises the program, has been making the guidelines clearer and the processes more rational and clear for the individuals that are arranging financial investments and for the financiers that are investing, more individuals have wanted and able to place effort and money right into the process to discover good projects and develop them, and afterwards extra investors have been eager to invest their money and take the risk and make use of the money to produce the jobs that is the factor of the program.

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These jobs do not wait around forever, and USCIS recognizes that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional center part of the program is not. It belongs to an appropriations expense that was passed in 1992, and considering that then that program has actually been extended five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes look here a good while to develop a project and afterwards to get the financiers approved. And they do not want their money flowing through till they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is already dissuading the growth of tasks.

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I would certainly like to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It simply is a truth that a lot of the regional facilities that are pooling investments have established those in places of high joblessness or in backwoods where half- million-dollar financial investments are allowed, which makes good sense.