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First, the program is placed in a very odd and non-helpful governmental location for the stimulation of international financial investment in the USA. Second, its scale is all wrong. We are distributing way too much for too little of an investment. Further, increasing financial backing half a million bucks a tranche is, to say the least, ineffective.


The regional facilities, with their half-million plans, basically undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to be concerning creating business entities, not easy financial investments. It ought to be concerning creating actual tasks, not specify computations regarding the indirect production of jobs, which is currently component of the regulations.


Probably that is one of the reasons why it has fallen short year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will enter into later on if anybody is interested.


This is a company that loves to say yes to candidates, yet as the table in my testimony shows, USCIS officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently factor

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Seventh, in this program visas go to individuals who might not get them otherwise and to individuals whose scheduled financial investment is really much less, according to the Federal Book, than the average mean total assets of all American households in 2007. Let me broaden on one of my observations.


My quote based upon the financiers' permit applications filed 2 years after the first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not provide the kind of information that we could utilize on this.


So for every $100 of boosted foreign investment that year, the EB program contributed one cent. Under a far more unsteady analytical base, the first applications of potential immigrant financiers, USCIS is informing journalists that the level of financial 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 immigration method group.




Divine offered as Chief Advice of the USA Citizenship and Immigration Services from July 2004 until try this out November 2006, the year in which he was Performing Supervisor, and then Acting Replacement Director. He has functioned extensively with the EB-5 program in personal technique. He was chosen, as I understand, vice president of the Association to Purchase U.S.A., the national sector organization of local facilities.


Divine, we are thrilled to have you below. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, 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, yet it is expanding and getting toward that. Particularly as USCIS, the firm that looks after the program, has been making the regulations clearer and the procedures more reasonable and clear for the people who are organizing financial investments and for the capitalists who are spending, even more people have agreed and able to put effort and money right into the procedure to discover great projects and establish them, and afterwards a lot more investors have actually agreed to spend their money More about the author and take the threat and make use of the cash to develop the tasks that Source is the factor of the program.

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These jobs do not wait around forever, and USCIS understands that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they are ready to refute applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations bill that was established in 1992, and given that then that program has actually 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 expiry in September.


The procedure takes a good while to function up a task and after that to get the financiers accepted. And they do not want their cash flowing via up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently preventing the advancement of tasks.

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I would certainly such as to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It simply is a fact that the majority of the regional facilities that are merging investments have set those in locations of high joblessness or in country areas where half- million-dollar investments are permitted, which makes good sense.