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The program is placed in a really odd and non-helpful governmental area for the excitement of worldwide investment in the United States. Second, its range is all wrong. We are distributing excessive for also small of an investment. Additionally, elevating equity capital half a million dollars a tranche is, to state the least, ineffective.


The local centers, with their half-million schemes, essentially damaged the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to be regarding creating organization entities, not easy financial investments. It ought to have to do with producing real work, not clarify estimations about the indirect creation of tasks, which is now component of the regulation.


Possibly that is just one of the reasons 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 clumsy, and the program is also full of intermediaries, both public and personal. The program has greater than its share of scandals, which I will certainly get right into later on if anyone is interested.


This is an agency that enjoys to say yes to applicants, however as the table in my testimony reveals, USCIS officers have far more problem with EB-5 applications than others. I think that is something that no one has actually really discussed a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and for great factor

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


My estimate based on the financiers' eco-friendly card applications submitted 2 years after the first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not give the sort of information that we can use on this.


For every $100 of increased international financial investment that year, the EB program added one cent. Under a a lot more unsteady statistical base, the initial applications of would-be immigrant capitalists, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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




Divine functioned as Chief Advise of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has actually functioned thoroughly with the EB-5 program secretive method. He was elected, as I recognize, vice head of state of the Association to Purchase United States, the nationwide market organization of regional facilities.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, however it is expanding and getting towards that. Specifically as USCIS, the agency that oversees the program, has been making the regulations more clear and the processes a lot more logical and clear for individuals that are arranging investments and for the investors that are investing, even more individuals have agreed and able to place initiative and money right into the process to find excellent projects and create them, and after that extra investors have agreed to invest their cash and take the threat and utilize the cash to create the work that is the point of the program.

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These projects do not wait around forever, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, as a matter of fact, they are all set to reject applications that are not certifying. And they do so, as was stated


The regional facility part of the program is not. It is part of an appropriations costs that was established in 1992, and given that then that program has been extended five 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 day of expiration in September.


The process takes an excellent while to work up a task and then to obtain the financiers approved. And they do not want their cash flowing via up until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is currently preventing the growth of projects.

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I would certainly such as to make clear that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a EB5 Regional Center Program million or a million is a function of the routine EB-5 legislation that is part of the code. It just is a truth that most of the regional facilities that are pooling investments have set those in locations of high unemployment or in backwoods where half- million-dollar financial investments are permitted, which makes feeling.