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The program is placed in a very strange and non-helpful bureaucratic area for the excitement of worldwide financial investment in the United States. We are offering away as well much for also tiny of an investment.


The local centers, with their half-million schemes, basically undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should have to do with creating service entities, not passive financial investments. It must be about developing real work, not elaborate calculations regarding the indirect creation of tasks, which is currently part of the regulation.


Maybe that is one of the reasons that it has stopped working every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of intermediaries, both public and private. The program has more than its share of rumors, which I will obtain right into later if anyone is interested.


This is a firm that likes to claim yes to applicants, however as the table in my testament shows, USCIS policemans have a lot a lot more trouble with EB-5 applications than others. I believe that is something that no one has truly discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for great reason

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Seventh, in this program visas go to people who might not get them differently and to individuals whose organized financial investment is in fact much less, according to the Federal Book, than the typical mean internet well worth of all American family members in 2007. Allow me increase on among my observations.


My quote based upon the financiers' permit applications filed 2 years after the first investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not give the type of information that we can make use of on this.


For every $100 of boosted foreign investment that year, the EB program added one cent. Under a far more wobbly statistical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $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 firm's immigration method group.




Divine functioned as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Director. He has actually worked thoroughly with the EB-5 program in personal practice. He was elected, as I understand, vice head of state of the Association to Invest in USA, the nationwide sector association of local.


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, Senator Grassley, and others.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the migration annually to the USA. It is not near that yet, however it is growing and obtaining towards that. Especially as USCIS, the firm that oversees the program, has actually been making the guidelines clearer and the procedures more logical and clear for the individuals that are organizing investments and for the capitalists that are investing, even more people have wanted and able to put effort and cash right into the procedure to find great jobs and create them, and afterwards much more financiers have actually wanted to invest their money and take the danger and EB5 Regional Center Program utilize the cash to develop the jobs that is the point of the program.

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These projects do not linger for life, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, as a matter of fact, they are prepared to deny applications that are not qualifying. And they do so, as was stated


The local center part of the program is not. It is component of an appropriations bill that was established in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes an excellent while to develop a job and after that to get the financiers accepted. And they do not want their money streaming via until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already inhibiting the development of jobs.

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I would like to clear up that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 legislation that becomes part of the code. It just is a reality that most of the regional centers that are pooling investments have established those in areas of high joblessness or in backwoods where half- million-dollar investments are enabled, and that makes good sense.