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The program is positioned in an extremely strange and non-helpful governmental area for the excitement of global investment in the United States. We are providing away too much for too little of a financial investment.


The local centers, 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 all, as they carry out in Australia, must have to do with creating service entities, not easy investments. It needs to be concerning producing real jobs, not elaborate estimations concerning the indirect creation of tasks, which is now part of the regulations.


Possibly that is among the reasons that it has actually fallen short year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also filled with middlemen, both public and personal. The program has greater than its share of rumors, which I will enter into later if anybody is interested.


This is a company that likes to claim yes to applicants, however as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and for good reason

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Seventh, in this program visas go to people that can not get them differently and to people whose organized investment is actually much less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Let me expand on one of my monitorings.


My estimate based upon the financiers' copyright applications filed 2 years after the initial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not supply the sort of information that we could utilize on this.


So for every single $100 of increased international financial investment that year, the EB program added one cent. Under a far more wobbly analytical base, the preliminary applications of potential immigrant investors, USCIS the original source is informing journalists that the level of financial investment in the just-concluded year was about $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 migration method group.




Divine functioned as Chief Counsel of the USA site link Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and then Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program in exclusive technique. He was elected, as I understand, vice head of state of the Association to Buy USA, the nationwide market association of regional facilities.


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


At most, if all 10,000 slots were used, it would be 1 percent of the migration annually to the USA. It is not near that yet, yet it is growing and getting towards that. Especially as USCIS, the agency that looks after the program, has actually been making the rules clearer and the procedures a lot more sensible and clear for the individuals who are arranging investments and for the capitalists who are spending, more individuals have actually agreed and able to put effort and cash into the procedure to discover excellent jobs and create them, and after that more financiers have actually agreed to invest their money and take the threat and make use click to read of the cash to develop the work that is the factor of the program.

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These projects do not linger permanently, and USCIS understands that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, in reality, they are prepared to reject applications that are not certifying. And they do so, as was pointed out


The regional center part of the program is not. It is component of an appropriations expense that was enacted in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes a great while to develop a job and afterwards to get the financiers authorized. And they do not want their money moving through until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is already dissuading the growth of tasks.

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I would such as to clear up that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It just is a truth that most of the local facilities that are merging investments have established those in locations of high unemployment or in rural locations where half- million-dollar financial investments are allowed, and that makes sense.