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Initially, the program is positioned in a really weird and non-helpful governmental place for the stimulation of international financial investment in the USA. Second, its range is all incorrect. We are giving away way too much for also small of a financial investment. Additionally, raising equity capital half a million dollars a tranche is, to state the least, inefficient.


The local facilities, with their half-million schemes, basically undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must be regarding developing organization entities, not passive investments. It needs to have to do with creating actual work, not clarify calculations about the indirect production of jobs, which is now component of the legislation.


Possibly that is among the reasons why it has actually fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also full of intermediaries, both public and personal. The program has even more than its share of rumors, which I will enter later on if any person is interested.


This is an agency that likes to state yes to applicants, but as the table in my statement shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I assume that is something that no one has actually spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely reason

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Seventh, in this program visas go to individuals who might not get them any type of other way and to individuals whose planned financial investment is actually much less, according to the Federal Get, than the typical mean internet well worth of all American family members in 2007. Let me increase on one of my monitorings.


My price quote based upon the capitalists' copyright applications filed 2 years after the very first investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not provide the type of information that we might utilize on this.


So for each $100 of enhanced international financial investment that year, the EB program contributed one dime. Under a much extra wobbly statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year had to go to my blog do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head that site of the firm's migration method team.




Divine functioned as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I understand, vice president of the Association to Invest in United States, the national industry association of regional.


Divine, we are pleased to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration annually to the USA. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the firm that oversees the program, has actually been making the rules clearer and the procedures More hints more rational and clear for the people that are arranging financial investments and for the investors that are spending, even more people have wanted and able to put initiative and money into the process to locate great tasks and create them, and after that a lot more investors have agreed to spend their money and take the danger and make use of the cash to produce the work that is the factor of the program.

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These jobs do not linger 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 scrutiny, and, actually, they are all set to reject applications that are not certifying. And they do so, as was stated


The regional facility component of the program is not. It belongs to an appropriations expense that was enacted in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The process takes a good while to develop a project and afterwards to get the financiers accepted. And they do not desire their money moving via until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the growth of jobs.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. It just is a fact that the majority of the regional facilities that are pooling investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes sense.