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The program is placed in a very odd and non-helpful bureaucratic area for the excitement of international investment in the United States. Second, its scale is all incorrect. We are giving away excessive for too little of a financial investment. Better, raising equity capital fifty percent a million dollars a tranche is, to claim the least, inefficient.


The local centers, with their half-million plans, essentially undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to have to do with developing business entities, not easy investments. It must have to do with creating actual tasks, not elaborate calculations regarding the indirect creation of jobs, which is now part of the regulation.


Possibly that is one of the reasons it has stopped working time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and private. The program has greater than its share of rumors, which I will certainly obtain right into later if anyone is interested.


This is a company that loves to claim yes to candidates, yet as the table in my testimony reveals, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually talked around a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to people that might not obtain them differently and to individuals whose planned financial investment is in fact less, according to the Federal Get, than the ordinary mean web well worth of all American family members in 2007. Allow me expand on among my observations.


My quote based upon the capitalists' copyright applications submitted 2 years after the initial financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not give the sort of information that we can make use of on this.


For every $100 of enhanced foreign financial investment that year, the EB program added one dime. Under a much more unsteady analytical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year was about $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 company's migration practice team.




Divine functioned as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and then Performing Replacement Director. He has worked thoroughly with the EB-5 program in exclusive method. He was elected, as I comprehend, vice president of the Organization to Invest in USA, the national market organization of local.


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


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and obtaining towards that. Especially as USCIS, the company that oversees the program, has been making the regulations more clear and the processes much more logical and clear for individuals who are arranging investments and for the investors who are spending, more people have actually been eager and able to put effort and money into the process to locate good projects and create find more information them, and after that much more financiers have been eager to spend their cash and take the threat and use the cash to produce the tasks that is the point of the program.

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These projects do not wait about 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 these details they are relaxing their examination, and, in fact, they are ready to deny applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It is component of an appropriations bill that was passed in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to develop a project and afterwards to get the capitalists accepted. And they do Full Report not desire their money flowing via until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of tasks.

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I wish to make clear that the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 regulation that belongs to the code. It simply is a reality that a lot of the regional centers that are merging investments have established those in areas of high joblessness or in country areas where fifty percent- million-dollar investments are enabled, and that makes feeling.