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The program is put in a really weird and non-helpful bureaucratic location for the excitement of worldwide investment in the United States. We are providing away also much for too little of a financial investment.


The local facilities, with their half-million plans, essentially undercut 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 have to do with producing company entities, not passive investments. It ought to have to do with developing actual tasks, not clarify calculations about the indirect production of work, which is currently part of the regulation.


Possibly that is among the reasons it has actually stopped working time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of intermediaries, both public and private. The program has greater than its share of detractions, which I will certainly enter later if anybody is interested.


This is a company that enjoys to claim yes to candidates, yet as the table in my testimony shows, USCIS police officers have a lot more problem with EB-5 applications than others. I believe that is something that nobody has truly chatted about much. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently factor

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Seventh, in this program visas go to people that could not get them differently and to individuals whose planned financial investment is actually much less, according to the Federal Reserve, than the typical mean web worth of all American households in 2007. Let me increase on one of my observations.


My quote based on the capitalists' copyright applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not provide the type of data that we might use on this.


For every $100 of increased foreign investment that year, the EB program contributed one cent. Under a far more wobbly statistical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing reporters that the level of investment in the just-concluded year had to do with $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 firm's migration practice team.




Divine worked as Chief Guidance of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I comprehend, vice head of state of the Association to Invest in U.S.A., the nationwide market organization of local.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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, Legislator Grassley, and others.


At most, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, but it is growing and obtaining towards that. Especially as USCIS, the agency that supervises the program, has been making the rules more clear and the processes much more logical and clear for the people that are arranging investments and for the investors that are spending, more individuals have agreed and able to place effort and cash into the process to locate great projects and create them, and afterwards much more capitalists have actually wanted to invest their cash and take the danger and use the cash to develop the work that is the factor of the program.

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These projects do not linger for life, 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 examination, and, actually, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The local 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 actually been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiry in September.


The process takes a good while to function up a job and then to obtain the capitalists approved. And they do not desire their money moving through until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already discouraging the development of projects.

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I would love to clarify that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that belongs to the code. It more info just is a reality that many of the regional centers that are merging investments have actually set those instead of high joblessness or in backwoods where half- million-dollar financial investments are enabled, and that makes sense.