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Initially, the program is positioned in an extremely strange and non-helpful bureaucratic area for the stimulation of international financial investment in the USA. Second, its scale is all incorrect. We are offering away too much for also little of a financial investment. Additionally, elevating endeavor funding half a million bucks a tranche is, to state the least, ineffective.


The local facilities, with their half-million systems, essentially undercut the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, must be about creating company entities, not easy financial investments. It ought to have to do with creating genuine tasks, not clarify calculations about the indirect creation of jobs, which is currently component of the legislation.


Probably that is just one of the reasons it has stopped working every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of intermediaries, both public and private. The program has greater than its share of scandals, which I will certainly enter later if any person is interested.


This is a company that loves to say yes to applicants, but as the table in my testimony shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I think that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and permanently factor

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Seventh, in this program visas go to people that might not get them differently and to people whose scheduled investment is in fact much less, according to the Federal Reserve, than the ordinary mean internet worth of all American families in 2007. Allow me increase on one of my monitorings.


My quote based on the capitalists' environment-friendly card applications filed 2 years after the first investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not supply the sort of information that we might make use of on this.


So for each $100 of raised foreign financial investment that year, the EB program contributed one cent. Under a a lot more unsteady analytical base, the first applications of prospective directory immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's migration method group.




Divine offered as Chief Counsel of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program in private technique. He was elected, as I understand, vice president of the Association to Buy United States, the nationwide industry organization of local facilities.


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


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the agency that looks after the program, has been making the policies more clear and the procedures a lot more rational and clear for individuals that are organizing investments and for the capitalists who are spending, even more people have actually agreed and able to place initiative and money into the process to locate great jobs and develop them, and afterwards extra investors have actually wanted to spend their money and take the danger like it and make use of the money to develop the jobs that is the point of the program.

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These projects do not wait around forever, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, in reality, they are prepared to deny applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to develop a job and afterwards to get the capitalists approved. And they do not desire their money moving through up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already preventing the growth of projects.

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I would like to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 law that is component of the code. It simply is a fact that many of the regional centers that are merging financial investments have try these out set those in places of high unemployment or in rural areas where fifty percent- million-dollar financial investments are enabled, which makes feeling.