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The program is positioned in a very weird and non-helpful bureaucratic area for the excitement of worldwide financial investment in the United States. We are giving away as well much for too tiny of an investment.


The regional facilities, with their half-million systems, basically damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should be concerning producing company entities, not easy financial investments. It should have to do with developing genuine work, not specify estimations about the indirect production of tasks, which is currently component of the regulations.


Probably that is just one of the reasons it has fallen short every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with middlemen, both public and exclusive. The program has more than its share of rumors, which I will get involved in later if any person is interested.


This is a firm that enjoys to state yes to candidates, but as the table in my testament shows, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and completely factor

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Seventh, in this program visas most likely to individuals that might not get them otherwise and to people whose organized investment is really less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Allow me broaden on one of my observations.


My quote based upon the capitalists' permit applications filed 2 years after the very first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not provide the kind of data that we can make use of on this.


So for every $100 of enhanced foreign financial investment that year, the EB program added one cent. Under a much extra unsteady statistical base, the first applications of prospective immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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




Divine functioned as Chief Guidance of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program in private technique. He was chosen, as I understand, vice head of state of the Organization to Buy U.S.A., the nationwide market association of local centers.


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


At most, if all 10,000 ports were used, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the company that oversees the program, has actually been making the rules clearer and the processes a lot more rational and clear for individuals that are organizing investments and for the capitalists that are investing, even more individuals have been ready and able to place effort and money into the procedure to locate good jobs and create them, and after that much more capitalists have wanted to spend their money and take the risk and make use of the cash to produce the tasks that is the factor of the program.

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These tasks do not wait about permanently, and USCIS comprehends that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, in truth, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The local center part of the program is not. It belongs to an appropriations expense that was enacted in 1992, and given that then that program has been expanded 5 times for 19 years. It is click here time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes a great while to work up a task and afterwards to get the investors authorized. And they do not want their cash streaming via up until they have been accepted. And the specter of the expiry of this Regional Center Program in September is already discouraging the development of projects.

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I would certainly such as to clarify 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 feature of the routine EB-5 regulation that becomes part of the code. It just is a reality that most of the regional centers that are pooling financial investments have established those in areas of high joblessness or in country locations where half- million-dollar financial investments are allowed, and that makes sense.