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The program is put in a very weird and non-helpful governmental area for the stimulation of international investment in the United States. We are offering away as well much for too small of an investment.


The regional facilities, with their half-million systems, essentially undercut the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must have to do with producing business entities, not passive financial investments. It needs to have to do with creating actual work, not clarify computations regarding the indirect creation of work, which is now part of the regulation.


Possibly that is just one of the reasons it has actually fallen short every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has more than its share of scandals, which I will get involved in later if any person is interested.


This is a firm that loves to state yes to candidates, yet as the table in my testimony reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has truly chatted about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently factor

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Seventh, in this program visas most likely to people who could not obtain them otherwise and to people whose scheduled investment is actually much less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Allow me expand on one of my observations.


My quote based upon the investors' eco-friendly card applications submitted 2 years after the very first financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not provide the kind of data that we can make use of on this.


So for every $100 of boosted foreign financial investment that year, the EB program added one dime. Under a far more shaky statistical base, the preliminary applications of would-be immigrant financiers, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. Chairman Leahy. He is the head more info of the company's migration practice group.




Divine functioned as Chief Advise of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Performing Replacement Director. He has actually worked thoroughly with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Association to Invest in U.S.A., the national sector organization of regional.


Divine, we are pleased to have you here. Please proceed, 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 United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the firm that supervises the program, has been making the guidelines clearer and the processes extra reasonable and clear for the individuals who are arranging investments and for the capitalists that are spending, even more people have agreed and able to place initiative and cash right into the procedure to find excellent jobs and establish them, and after that more financiers have wanted to invest their money and take the danger and utilize the cash to create the jobs that is the factor of the program.

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These tasks do not wait about forever, and USCIS comprehends that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they are ready to refute applications that are not qualifying. And they do so, as was pointed out


The local facility part of the program is not. It belongs to an appropriations bill that was passed in 1992, and because then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiry in September.


The process takes a great while to develop a task and after that to obtain the financiers authorized. And they do not want their cash moving with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the growth of tasks.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It simply is a truth that many of the regional centers that are pooling financial investments have actually established those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, which makes feeling.