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The program is positioned in a really odd and non-helpful bureaucratic location for the stimulation of worldwide financial investment in the United States. Second, its range is all wrong. We are providing away too much for as well little of an investment. Even more, raising financial backing fifty percent a million dollars a tranche is, to say the least, inefficient.


The local centers, with their half-million systems, essentially damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should have to do with producing business entities, not passive financial investments. It ought to have to do with creating real jobs, not clarify estimations concerning the indirect production of tasks, which is currently part of the legislation.


Maybe that is one of the reasons it has fallen short every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also full of middlemen, both public and exclusive. The program has more than its share of scandals, which I will get involved in later if anyone is interested.


This is a firm that likes to say yes to candidates, but as the table in my testimony reveals, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals who can not get them differently and to people whose planned investment is really less, according to the Federal Book, than the average mean web worth of all American households in 2007. Let me increase on one of my monitorings.


My price quote based upon the capitalists' copyright applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the sort of information that we could use on this.


For every $100 of increased international investment that year, the EB program contributed one cent. Under a much a lot more shaky statistical base, the preliminary applications of prospective immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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




Divine acted as Principal Guidance of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Replacement Supervisor. He has actually worked thoroughly with the EB-5 program in personal method. He was elected, as I understand, vice head of state of hop over to these guys the Association to Buy U.S.A., the national market organization of local centers.


Divine, we are delighted 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 HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports next were utilized, it would be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and getting towards that. Specifically as USCIS, the company that manages the program, has been making the regulations clearer and the procedures more logical and clear for the individuals who are organizing investments and for the financiers who are spending, even more people have actually wanted and able to place effort and cash into the process to locate great tasks and develop them, and then more investors have agreed to invest their cash and take the risk and utilize the cash to create the tasks that is the factor of the program.

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These jobs do not wait about for life, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, actually, they prepare to reject applications that are not certifying. And they do so, as was stated


The local center component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and since then 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 currently and not nearer to the date of expiration in September.


The procedure takes a good while to develop a project and after that to get the financiers approved. And they do not want their cash flowing with until they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently dissuading the advancement of tasks.

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I want to clarify 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 function of the normal EB-5 regulation that is part of the code. It just is a navigate to these guys reality that a lot of the local facilities that are merging financial investments have set those instead of high joblessness or in country locations where half- million-dollar financial investments are permitted, and that makes feeling.