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The program is put in an extremely weird and non-helpful governmental location for the stimulation of global investment in the United States. We are giving away as well much for as well tiny of a financial investment.


The local centers, with their half-million systems, basically damaged the much 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 concerning developing service entities, not easy financial investments. It ought to have to do with producing real work, not elaborate computations concerning the indirect development of work, which is currently part of the legislation.


Maybe that is just one of the reasons it has fallen short time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too filled with middlemen, both public and personal. The program has more than its share of detractions, which I will get into later on if anyone is interested.


This is a firm that loves to state yes to applicants, however as the table in my testimony reveals, USCIS police officers have much extra problem with EB-5 applications than others. I think that is something that no one has really spoken about 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 people that could not obtain them otherwise and to people whose organized investment is in fact less, according to the Federal Reserve, than the ordinary mean net worth of all American family members in 2007. Let me broaden on one of my monitorings.


My estimate based upon the financiers' eco-friendly card applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not provide the kind of data that we can make use of on this.


For every $100 of raised international investment that year, the EB program added one penny. Under a far more unsteady analytical base, the initial applications of prospective immigrant financiers, USCIS is telling 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 served as Chief Advice of the USA Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Performing Replacement Supervisor. He has actually worked extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice president of the Organization to Invest in USA, the national market association of local.


Divine, we are delighted to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were utilized, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is growing and getting toward that. Specifically as USCIS, the company that looks after the program, has actually been making the regulations more clear and the processes extra sensible and clear for individuals that are organizing financial investments and for the capitalists who are spending, more people have been prepared and able to find out here now put initiative and money right into the process to locate great tasks and establish them, and then much more capitalists have been prepared to invest their cash and take the risk and make use of the cash to produce the tasks that is the point of the program.

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These jobs do not wait about forever, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, in truth, they prepare to reject applications that are not certifying. And they do so, as was pointed out


The regional center component of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and because then that program has been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes look at here now a great while to function up a task and afterwards to obtain the financiers accepted. And they do not want their money streaming with up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already inhibiting the growth of jobs.

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I wish to like this make clear that the Regional Facility Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 regulation that is part of the code. It just is a fact that the majority of the regional centers that are merging financial investments have actually set those in locations of high joblessness or in backwoods where half- million-dollar investments are permitted, and that makes feeling.