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The program is put in an extremely weird and non-helpful administrative area for the stimulation of global financial investment in the United States. Second, its scale is all wrong. We are handing out way too much for also small of an investment. Additionally, increasing equity capital half a million dollars a tranche is, to say the least, ineffective.


The regional facilities, with their half-million plans, essentially damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to have to do with producing service entities, not easy investments. It should have to do with developing real tasks, not specify computations concerning the indirect development of tasks, which is now component of the legislation.


Possibly that is among the reasons that it has actually fallen short time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well full of middlemen, both public and private. The program has even more than its share of rumors, which I will certainly enter later if anyone is interested.


This is a company that loves to say yes to applicants, but as the table in my statement shows, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and forever reason

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Seventh, in this program visas go to people who might not get them differently and to people whose planned financial investment is really much less, according to the Federal Book, than the average mean web well worth of all American families in 2007. Let me broaden on one of my observations.


My quote based upon the capitalists' eco-friendly card applications filed 2 years after the very first financial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the sort of data that we can make use of on this.


So for every single $100 of raised 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 investors, USCIS is informing journalists that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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




Divine worked as Chief Guidance of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Director. He has worked thoroughly with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Association to Spend in U.S.A., the national market organization of regional.


Divine, we are happy to have you below. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the firm that supervises the program, has been making the guidelines more clear and the processes more rational and clear go to my site for the people that are arranging financial investments and for the investors that are spending, even more people have actually wanted and able to put effort and cash into the process to discover good tasks and develop them, and afterwards a lot more capitalists have actually wanted to spend their cash and take the threat and make use of the cash to create the work that is the factor of the program.

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These tasks do not wait about for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was discussed


The regional center component of the program redirected here is not. It belongs to an appropriations costs that was established in 1992, and considering that then that program has been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to develop a job and then to get the financiers approved. And they do not want their cash streaming through up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the development of projects.

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I would love to make clear that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 law that belongs to the code. It simply is a reality that many of the local facilities that are merging financial investments have actually established those instead of high joblessness or visit site in rural locations where half- million-dollar financial investments are allowed, which makes good sense.