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The program is placed in an extremely odd and non-helpful administrative location for the stimulation of global financial investment in the United States. Second, its scale is all incorrect. We are distributing way too much for also little of an investment. Additionally, raising equity capital half a million bucks a tranche is, to say the least, inefficient.


The local facilities, with their half-million schemes, basically damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must have to do with producing company entities, not passive financial investments. It needs to be concerning developing actual work, not elaborate estimations regarding the indirect creation of tasks, which is currently part of the regulation.


Perhaps that is just one of the factors why it has fallen short time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too loaded with intermediaries, both public and personal. The program has greater than its share of rumors, which I will enter into later if anyone is interested.


This is an agency that loves to claim yes to applicants, yet as the table in my statement shows, USCIS policemans have much extra trouble with EB-5 applications than others. I think that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to people who can not get them differently and to individuals whose planned investment is in fact less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Allow me expand on among my monitorings.


My price quote based on the investors' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not offer the type of information that we can make use of on this.


For every $100 of raised foreign investment that year, the EB program added one penny. Under a far more shaky statistical base, the first applications of potential immigrant capitalists, USCIS is telling 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 listening to me. Chairman Leahy. He is the head of the firm's migration practice group.




Divine acted as Principal Counsel of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state of the Organization to Invest in USA, the national sector organization of local.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At visit their website most, if all 10,000 slots were made use of, it would be 1 percent of the migration annually to the United States. It is not near that yet, yet it is expanding and getting towards that. Especially her response as USCIS, the company that supervises the program, has actually been making the regulations more clear and the processes much more rational and clear for the individuals who are organizing financial investments and for the financiers that are spending, even more people have actually agreed and able to put effort and cash right into the procedure to discover good projects and establish them, and after that extra capitalists have actually been eager to invest their money and take the threat and use the cash to develop the jobs that is the point of the program.

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These tasks do not wait around for life, and USCIS recognizes that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, in truth, they are prepared to reject applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It is component of an appropriations costs that was enacted 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 now and not nearer to the date of expiry in September.


The procedure takes a good while to develop a project and afterwards to obtain the investors approved. And they do not desire their cash flowing through till they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the development of tasks.

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I would certainly such as to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a my explanation million is a function of the regular EB-5 legislation that is part of the code. It simply is a truth that a lot of the local facilities that are pooling investments have established those in places of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes sense.