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The program is put in a very strange and non-helpful bureaucratic location for the stimulation of international investment in the United States. We are offering away also much for also small of an investment.

The local centers, with their half-million systems, essentially damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must be concerning developing company entities, not passive financial investments. It must be regarding creating actual work, not clarify estimations concerning the indirect production of tasks, which is currently component of the legislation.


Perhaps that is just one of the reasons that it has actually fallen short every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with middlemen, both public and private. The program has greater than its share of scandals, which I will certainly enter into later on if anybody is interested.


This is a firm that likes to say yes to candidates, yet as the table in my testimony reveals, USCIS officers have a lot extra difficulty with EB-5 applications than others. I think that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas most likely to people who might not get them otherwise and to people whose planned investment is actually less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Let me broaden on one of my observations.


My estimate based on the capitalists' permit applications filed 2 years after the very first investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not supply the type of information that we might utilize on this.


So for every single $100 of raised international financial investment that year, the EB program added one cent. Under a much a lot more unsteady analytical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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

Divine functioned as Principal Counsel of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and then Performing Replacement Supervisor. He has functioned thoroughly with the EB-5 program in personal technique. He was elected, as I recognize, vice head of state of the Organization to Invest in United States, the national market association of local.


Divine, we are thrilled 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 PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, yet it is growing and obtaining toward that. Particularly as USCIS, the company that manages the program, has been making the regulations clearer and the procedures extra logical and clear for the people who are arranging investments and for the capitalists that are investing, even more people have wanted and able to put initiative and money into the procedure to discover excellent tasks and develop them, and afterwards extra financiers have actually been prepared to spend their money and take the risk and make use of the look at these guys money to produce the work that is the point of the program.

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These jobs do not wait around for life, and USCIS comprehends that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, as a matter of fact, they are ready to deny applications that are not qualifying. And they do so, as was discussed

The regional center part of the program is not. It is part of an appropriations expense that was enacted in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a great while to develop a job and then to get the capitalists authorized. And they do not want their cash flowing via until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already discouraging the development of tasks.

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I would certainly like to make clear that the Regional Center Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a fact that many of the local centers that are pooling financial investments have actually established those in areas of high joblessness or in backwoods where see this site half- million-dollar investments are allowed, and that makes good sense.