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The program is placed in a really strange and non-helpful bureaucratic place for the stimulation of worldwide investment in the United States. Second, its range is all incorrect. We are giving away way too much for too tiny of a financial investment. Better, increasing venture resources half a million dollars a tranche is, to state the least, inefficient.


The regional centers, with their half-million plans, essentially undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to have to do with creating service entities, not passive financial investments. It needs to have to do with creating genuine work, not clarify calculations regarding the indirect creation of tasks, which is currently part of the legislation.


Perhaps that is just one of the reasons that it has failed every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well filled with intermediaries, both public and private. The program has even more than its share of scandals, which I will enter into later on if any person is interested.


This is a company that loves to say yes to applicants, yet as the table in my statement reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has actually actually spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to people that might not obtain them otherwise and to individuals whose scheduled financial investment is in fact less, according to the Federal Book, than the average mean net well worth of all American households in 2007. Let me broaden on among my monitorings.


My estimate based upon the financiers' permit applications submitted 2 years after the first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not give the type of information that we can use on this.


For every $100 of enhanced international financial investment that year, the EB program added one penny. Under a much extra unsteady statistical base, the initial applications of prospective immigrant investors, USCIS is informing journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's migration method group.




Divine offered as Principal Counsel of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has worked extensively with the EB-5 program in exclusive method. He was elected, as I recognize, vice president of the Organization to Spend in U.S.A., the national industry association of local.


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


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, yet it is expanding and getting towards that. Specifically as USCIS, the agency that supervises the program, has actually been making the policies more clear and the procedures extra logical and clear for the individuals who are organizing financial investments and for the Find Out More investors that are spending, more people have actually agreed and able to place effort and money into the process to locate good jobs and establish them, and afterwards extra financiers have wanted to invest their cash and take the risk and make use of the cash to create the tasks that is the point of the program.

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These projects do not linger forever, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has actually 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 date of expiry in September.


The process takes an excellent while to work up a task and then to get the capitalists approved. And they do not want their money flowing via till they have actually been approved. And the specter of the Clicking Here expiration of this Regional Center Program in September is already dissuading the advancement you could try here of projects.

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I wish to clarify that the Regional Center Program is not the like 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 just is a fact that most of the regional centers that are merging investments have actually set those instead of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes good sense.