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The program is positioned in a really odd and non-helpful bureaucratic area for the excitement of worldwide financial investment in the United States. Second, its scale is all incorrect. We are handing out excessive for too little of a financial investment. Better, raising venture capital half a million bucks a tranche is, to say the least, ineffective.


The regional facilities, with their half-million plans, essentially undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to have to do with creating organization entities, not easy financial investments. It should be about developing genuine jobs, not elaborate estimations about the indirect creation of work, which is currently part of the regulation.


Possibly that is among the reasons why it has failed year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also loaded with middlemen, both public and private. The program has more than its share of detractions, which I will certainly get involved in later if anyone is interested.


This is a firm that loves to claim yes to applicants, however as the table in my testimony shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I think that is something that nobody has actually actually chatted about a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and forever reason

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Seventh, in this program visas go to individuals who could not obtain them otherwise and to individuals whose scheduled investment is really less, according to the Federal Reserve, than the typical mean net well worth of all American families in 2007. Let me increase on among my observations.


My quote based upon the capitalists' environment-friendly card applications filed 2 years after the very first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not provide the type of data that we can use on this.


For every $100 of increased foreign financial investment that year, the EB program added one penny. Under a far more wobbly statistical base, the preliminary applications of potential immigrant capitalists, USCIS is click here informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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




Divine functioned as Principal Guidance of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has functioned extensively with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Organization to Invest in United States, the national industry association of regional facilities.


STATEMENT 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, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, but it is expanding and obtaining toward that. Specifically as USCIS, the company that looks after the program, has been making the rules clearer and the procedures more sensible and clear for individuals that are arranging financial investments and for the investors that are investing, even more people have actually wanted and able to place effort and money right into the process to locate excellent projects and establish them, and afterwards extra financiers have actually been ready to invest their cash and take the risk and make use of the money to create the work that is the point of the program.

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These tasks 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 suggest that they are relaxing their scrutiny, and, in fact, they are all set to reject applications that are not qualifying. And they do so, as was mentioned


The local center component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and because then that program has been extended five 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 process takes a great while to function up a task and afterwards to obtain the capitalists authorized. And they do not want their money moving via till they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the growth of tasks.

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I want 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 feature of the normal EB-5 legislation that belongs to the code. It just is a fact that the majority of the regional centers that are merging investments have established those instead of high unemployment or in country areas where half- million-dollar financial investments are allowed, which makes good sense.