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The program is placed in a really odd and non-helpful bureaucratic area for the stimulation of global financial investment in the United States. We are offering away as well much for too little of an investment.


The local centers, with their half-million plans, essentially damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should be concerning developing business entities, not passive financial investments. It should have to do with developing real jobs, not clarify calculations about the indirect production of tasks, which is currently component of the regulation.


Probably that is among the reasons why it has failed every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with intermediaries, both public and private. The program has more than its share of scandals, which I will certainly enter later if anybody is interested.


This is a company that enjoys to say yes to applicants, however as the table in my statement shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually really chatted about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and forever reason

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Seventh, in this program visas go to people that could not obtain them any kind of other means and to people whose planned financial 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 broaden on one of my monitorings.


My quote based on the capitalists' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not give the sort of data that we could utilize on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one cent. Under a far more unsteady statistical base, the initial applications of prospective immigrant investors, USCIS is informing journalists that the degree 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 company's immigration practice group.




Divine offered as Chief Guidance of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Director. He has worked thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice head of state of the Association to Invest in United States, the national industry organization of local centers.


STATEMENT EB5 Regional Center Program OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 slots were used, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, but it is expanding and getting towards that. Particularly as USCIS, the firm that looks after the program, has been making the guidelines clearer and the procedures a lot more rational and clear for individuals who are arranging investments and for the capitalists that are investing, more individuals have wanted and able to place effort and money right into the procedure to find good tasks and create them, and after that much more financiers have been prepared to spend their money and take the risk and make use of the cash to develop the tasks that is the point of the program.

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These projects 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 imply that they are unwinding their analysis, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It is part of an appropriations expense that was passed in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to function up a job and after that to obtain the capitalists approved. And they do not want their money moving through till they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already preventing the growth of tasks.

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I wish to clear up that the Regional Center Program is not the very 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 becomes part of the code. It just is a truth that many of the local centers that are pooling investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes good sense.