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The program is positioned in a really strange and non-helpful bureaucratic location for the stimulation of international investment in the United States. We are providing away as well much for as well tiny of a financial investment.


The regional centers, with their half-million plans, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to be concerning producing company entities, not easy financial investments. It needs to have to do with creating actual jobs, not specify computations about the indirect development of jobs, which is currently component of the regulations.


Possibly that is among the factors why it has fallen short every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with middlemen, both public and exclusive. The program has more than its share of detractions, which I will obtain into later on if anybody is interested.


This is a company that enjoys to say yes to applicants, however as the table in my testimony shows, USCIS police officers have much more trouble with EB-5 applications than others. I assume that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever reason

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Seventh, in this program visas go to people who can not obtain them otherwise and to people whose scheduled investment is actually less, according to the Federal Reserve, than the average mean internet well worth of all American families in 2007. Let me increase on among my monitorings.


My quote based on the investors' permit applications filed 2 years after the first investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not supply the type of data that we could make use of on this.


So for every single $100 of raised international investment that year, the EB program added one dime. Under a much a lot more wobbly statistical base, the first applications of potential immigrant financiers, USCIS is informing reporters that the level of investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's immigration method group.




Divine functioned as Chief Advice of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Replacement Director. He has functioned thoroughly with the EB-5 program in private technique. He was chosen, as I comprehend, vice president of the Organization to Invest in USA, the nationwide industry organization of local facilities.


Divine, we are happy to have you right here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were made use of, 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. Especially as USCIS, the agency that looks after the program, has been making the policies more clear and the processes more reasonable and clear for individuals that are arranging investments and for the capitalists that are investing, more people have actually been ready and able to put initiative and money into the process to locate good jobs and create them, and afterwards extra investors have been eager to invest their money and take the threat and make use of the money to create the tasks that is the factor of the program.

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These jobs do not wait around forever, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, actually, 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 established in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiry in September.


The process takes a great while to function up a project and after that to get the investors authorized. And they do not desire their cash flowing via till they have been approved. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of jobs.

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I would love to clarify that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 legislation that belongs to the code. It simply is a fact that many of the regional facilities that are pooling investments have actually established those in locations of high joblessness or in rural areas here where half- million-dollar financial investments are permitted, and that makes sense.