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The program is put in a very odd and non-helpful bureaucratic location for the stimulation of global financial investment in the United States. Second, its range is all wrong. We are providing away way too much for too small of a financial investment. Further, increasing financial backing fifty percent a million dollars a tranche is, to say the least, ineffective.

The local centers, with their half-million plans, basically undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must have to do with creating company entities, not passive investments. It must have to do with producing real work, not elaborate calculations concerning the indirect development of tasks, which is currently component of the regulations.


Maybe that is one of the reasons that it has actually fallen short every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with intermediaries, both public and personal. The program has greater than its share of scandals, which I will enter later on if anybody is interested.


This is an agency that loves to state yes to applicants, but as the table in my testimony reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually actually spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas most likely to individuals that can not get them differently and to people whose scheduled investment is in fact much less, according to the Federal Book, than the ordinary mean internet well worth of all American family members in 2007. Let me broaden on one of my observations.


My estimate based on the financiers' permit applications filed 2 years after the initial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not supply the type of information that we might use on this.


So for every $100 of raised international investment that year, the EB program added one cent. Under a far more unsteady statistical base, the preliminary applications of would-be immigrant financiers, 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 listening to me. Chairman Leahy. He is the head of the company's migration method group.

Divine acted as Principal Advise of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice head of state of the Organization to Purchase United States, the nationwide market association of local facilities.


Divine, we are pleased to have you here. Please proceed, sir. try this website STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the agency that manages the program, has actually been making the rules their explanation clearer and the procedures more rational and clear for individuals who are organizing investments and for the investors who are spending, even more people have actually wanted and able to place initiative and cash right into the process to find great projects and establish them, and after that extra capitalists have actually been ready to spend their cash and take the threat and make use of the cash to produce the work that is the factor of the program.

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These projects do not linger permanently, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was discussed

The regional center part of the program is not. It belongs to an appropriations bill that was established in 1992, and since then that program has been prolonged five times for 19 years. It why not try these out is time for it to be long-term, and it needs to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to develop a job and after that to get the investors approved. And they do not want their money flowing via till they have been accepted. And the specter of the expiration of this Regional Center Program in September is already dissuading the advancement of tasks.

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I want to make clear 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 function of the normal EB-5 regulation that becomes part of the code. It simply is a reality that the majority of the regional facilities that are merging investments have actually established those in places of high joblessness or in backwoods where half- million-dollar financial investments are enabled, which makes sense.