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First, the program is positioned in an extremely strange and non-helpful bureaucratic place for the excitement of global investment in the United States. Second, its scale is all incorrect. We are handing out excessive for as well small of an investment. Further, elevating equity capital half a million dollars a tranche is, to state the least, ineffective.

The regional centers, with their half-million schemes, essentially damaged the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to be about producing organization entities, not easy financial investments. It should be about producing actual tasks, not clarify calculations concerning the indirect production of work, which is now part of the regulations.


Probably that is one of the reasons that it has actually failed year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too loaded with intermediaries, both public and private. The program has more than its share of rumors, which I will certainly obtain into later if anyone is interested.


This is a company that likes to claim yes to applicants, but as the table in my testimony shows, USCIS policemans have a lot extra difficulty with EB-5 applications than others. I think that is something that nobody has actually spoken about a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and completely reason

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Seventh, in this program visas go to individuals who could not obtain them any kind of other method and to individuals whose planned investment is in fact less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Allow me increase on among my monitorings.


My estimate based upon the financiers' permit applications submitted 2 years after the very first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not give the kind of data that we can utilize on this.


For every $100 of raised international financial investment that year, the EB program added one penny. Under a far more shaky analytical base, the preliminary applications of potential immigrant investors, USCIS is informing reporters that the level of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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

Divine acted as Principal Advice of the check here USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Replacement Director. He has actually functioned thoroughly with the EB-5 program in private method. He was elected, as I recognize, vice head of state of the Organization to Invest in U.S.A., the national sector association of regional.


Divine, we are delighted to have you below. Please go ahead, sir. DECLARATION 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. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration every year to the United States. It is not near that yet, however it is growing and getting toward that. Specifically as USCIS, the firm that manages the program, has been making the guidelines more clear and the procedures much more reasonable and clear for individuals who are organizing financial investments and for the financiers who are investing, even more individuals have wanted and able to place effort and cash into the procedure to find excellent projects and establish them, and afterwards more investors have wanted to invest their money 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 projects do not linger permanently, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, in reality, they are ready to deny applications that are not qualifying. And they do so, as was discussed

The regional facility part of the program is not. It is part of an appropriations costs that was passed in 1992, and ever since that program has been prolonged 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 develop a job and after that to get the investors approved. And they do not want their money moving via until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of jobs.

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I would certainly such as to clarify that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 regulation that becomes part of the code. It simply is a truth that a lot of the regional facilities that are merging investments have actually set those in locations of high unemployment or in backwoods where half- million-dollar financial investments are allowed, and that makes sense.