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The program is positioned in a really odd and non-helpful administrative location for the excitement of global financial investment in the United States. We are giving away also much for also tiny of an investment.


The local facilities, with their half-million schemes, essentially undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must be concerning creating business entities, not passive investments. It ought to be concerning creating actual jobs, not specify estimations regarding the indirect development of work, which is now part of the regulation.


Probably that is one of the reasons that it has failed year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of middlemen, both public and personal. The program has greater than its share of rumors, which I will certainly get involved in later on if anybody is interested.


This is a firm that likes to state yes to applicants, but as the table in my testimony reveals, USCIS policemans have a lot more problem with EB-5 applications than others. I assume that is something that nobody has truly discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and completely factor

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Seventh, in this program visas go to individuals that could not obtain them any type of other way and to individuals whose planned investment is really less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Let me broaden on among my observations.


My estimate based on the capitalists' eco-friendly card applications filed 2 years after the initial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not supply the kind of information that we can make use of on this.


For every $100 of boosted foreign financial investment that year, the EB program contributed one dime. Under a a lot more shaky statistical base, the preliminary applications of would-be immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's migration method group.




Divine offered as Chief Advice my review here of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Deputy Director. He has actually functioned extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice head of state of the Association to Invest in U.S.A., the nationwide sector organization of local facilities.


Divine, we are pleased to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration his explanation every year to the United States. It is not near that yet, however it is expanding and getting toward that. Particularly as USCIS, the company that supervises the program, has actually been making the policies clearer and the processes much more logical and clear for individuals who are organizing financial investments and for the investors that are spending, even more people have agreed and able to place effort and money right into the procedure to locate excellent projects and create them, and after that a lot more financiers have been prepared to spend their money and take the threat and make use of the cash to develop the tasks that is the point of the program.

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These jobs do not wait this content about for life, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, in truth, they prepare to refute applications that are not qualifying. And they do so, as was discussed


The regional center part of the program is not. It is component of an appropriations expense that was established in 1992, and ever since that program has been extended five 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 expiry in September.


The procedure takes a good while to work up a project and then to get the capitalists accepted. And they do not want their money flowing through till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the advancement of projects.

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I would love to clear up that the Regional Center Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that is part of the code. It simply is a reality that many of the regional centers that are merging financial investments have established those instead of high joblessness or in rural locations where half- million-dollar investments are allowed, which makes sense.