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Initially, the program is placed in a very strange and non-helpful governmental place for the stimulation of worldwide financial investment in the USA. Second, its scale is all wrong. We are handing out excessive for also small of an investment. Further, elevating equity capital fifty percent a million bucks a tranche is, to state the least, inefficient.


The local facilities, with their half-million plans, basically damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, must have to do with producing company entities, not passive financial investments. It must have to do with producing real tasks, not elaborate calculations regarding the indirect development of jobs, which is currently component of the regulations.


Maybe that is among the reasons it has actually fallen short time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of intermediaries, both public and personal. The program has even more than its share of scandals, which I will get involved in later on if anybody is interested.


This is a company that loves to state yes to candidates, however as the table in my testimony shows, USCIS police officers have far more difficulty with EB-5 applications than others. I assume that is something that nobody has actually really spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever factor

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Seventh, in this program visas most likely to individuals that can not obtain them otherwise and to individuals whose scheduled investment is really much less, according to the Federal Get, than the typical mean net well worth of all American households in 2007. Allow me broaden on among my observations.


My quote based on the capitalists' permit applications submitted 2 years after the first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not provide the kind of information that we can make use of on this.


For every $100 of raised international investment that year, the EB program added one penny. Under a far more unsteady statistical base, the first applications of potential immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's immigration method team.




Divine worked as Principal Advise of the USA Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program in private technique. He was elected, as I understand, vice head of state of the Association to Spend in U.S.A., the nationwide market association of local.


Divine, we are thrilled to have you right here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were used, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the agency that supervises the program, has actually been making the regulations clearer and the processes a lot more sensible and clear for individuals who are arranging financial investments and for the capitalists that are investing, even more individuals have been eager and able to place effort and money right into the procedure to find good jobs and create them, and after that extra investors have actually agreed to invest their money and take the danger and use the money to develop the jobs that is the factor of the program.

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These tasks do not wait around forever, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, in reality, they are prepared 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 expense that was enacted in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry check here in September.


The process takes a good while to develop a project and after that to obtain the capitalists authorized. And they do not want their cash flowing with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already discouraging the advancement of projects.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 legislation that is component of the code. It simply is a reality that the majority of the local facilities that are pooling financial investments have set those instead of high unemployment or in rural locations where fifty percent- million-dollar investments are permitted, and that makes feeling.