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The program is positioned in a very strange and non-helpful administrative area for the excitement of global financial investment in the United States. We are giving away too much for too little of a financial investment.


The regional facilities, with their half-million plans, essentially undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to have to do with developing organization entities, not easy investments. It should have to do with creating actual tasks, not clarify computations regarding the indirect creation of jobs, which is now component of the regulation.


Probably that is just one of the reasons that it has fallen short time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too full of intermediaries, both public and exclusive. The program has more than its share of rumors, which I will obtain into later if anybody is interested.


This is a firm that likes to say yes to applicants, but as the table in my testimony shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high rates of internal denials in this program and completely factor

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Seventh, in this program visas go to people who might not get them any other method and to people whose scheduled financial investment is actually less, according to the Federal Get, than the typical mean web well worth of all American family members in 2007. Allow me expand on one of my monitorings.


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


So for each $100 of enhanced international financial investment that year, the EB program contributed one cent. Under a a lot more shaky statistical base, the preliminary applications of prospective immigrant capitalists, 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 company's immigration practice group.




Divine acted as Principal Advise of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. He has functioned thoroughly with the EB-5 program in personal method. He was elected, as I recognize, vice head of state of the Association to Purchase USA, the national industry organization of local centers.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 ports more info 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 expanding and obtaining towards that. Particularly as USCIS, the firm that looks after the program, has been making the policies clearer and the processes much more sensible and clear for the individuals who are arranging financial investments and for the capitalists that are investing, more individuals have been eager and able to place effort and money right into the process to locate excellent projects and create them, and afterwards much more financiers have agreed to invest their money and take the threat and utilize the cash to produce the work that is the point of the program.

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These tasks do not wait around forever, and USCIS comprehends that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The regional facility component of the program is not. It belongs to an appropriations costs that was established in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes an excellent while to work up a job and after that to obtain the investors authorized. And they do not want their money streaming with up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the advancement of projects.

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I would certainly like to clear up that the Regional Center Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It just is a reality that the majority of the local centers that are pooling investments have set those instead of high unemployment or in backwoods where half- million-dollar financial investments are permitted, and that makes sense.