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The program is positioned in a very weird and non-helpful bureaucratic area for the stimulation of international financial investment in the United States. We are providing away too much for as well little of an investment.


The local facilities, with their half-million systems, basically damaged the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to be concerning producing organization entities, not easy financial investments. It must be concerning producing real tasks, not elaborate calculations concerning the indirect production of tasks, which is currently part of the regulation.


Possibly that is just one of the factors why it has stopped working year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will enter later if anybody is interested.


This is a company that likes to state yes to applicants, yet as the table in my statement shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has really chatted about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for excellent factor

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Seventh, in this program visas go to people that might not get them differently and to people whose organized investment is really much less, according to the Federal Reserve, than the typical mean total assets of all American families in 2007. Let me increase on one of my monitorings.


My quote based on the financiers' copyright applications submitted 2 years after the first financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not offer the kind of information that we might use on this.


So for every $100 of enhanced international investment that year, the EB program contributed one cent. Under a a lot more unsteady analytical base, the initial applications of would-be immigrant capitalists, USCIS is informing reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's migration practice group.




Divine functioned as Principal Advise of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program in exclusive technique. He was chosen, as I understand, vice head of state of the Association to Spend in United States, the national industry association of regional centers.


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


At a lot of, if all 10,000 slots were utilized, it would be 1 percent of the migration each year to the United States. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the firm that looks after the program, has actually been making the guidelines clearer and the procedures extra reasonable check here and clear for the people that are arranging financial investments and for the investors that are spending, more people have wanted and able to put effort and cash right into the procedure to find excellent jobs and develop them, and afterwards a lot more financiers have agreed to invest their money and take the threat and make use of the cash to produce the tasks that is the point of the program.

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These tasks do not wait about for life, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It is part of an appropriations costs that was passed in 1992, and ever since that program has actually been extended 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 date of expiry in September.


The process takes a good while to function up a job and after that to obtain the investors approved. And they do not desire their money streaming via until they have been accepted. And the specter of the expiry of this Regional Center Program in September is already discouraging the development of jobs.

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I would love to clear up that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 legislation that becomes part of the code. It simply is a reality that the majority of the local facilities that are merging investments have actually set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes feeling.