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The program is placed in an extremely weird and non-helpful governmental area for the excitement of international investment in the United States. We are offering away too much for also tiny of an investment.


The regional centers, with their half-million schemes, basically undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to have to do with creating company entities, not easy financial investments. It needs to have to do with creating actual tasks, not elaborate calculations concerning the indirect development of work, which is now part of the regulations.


Maybe that is just one of the reasons why it has actually stopped working every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly enter into later on if anybody is interested.


This is an agency that loves to say yes to applicants, yet as the table in my testimony reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually actually discussed much. EB5 Regional Center Program. There are high prices of inner denials in this program and for good factor

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Seventh, in this program visas most likely to people that could not obtain them differently and to individuals whose scheduled investment is really less, according to the Federal Get, than the ordinary mean net well worth of all American family members in 2007. Let me broaden on one of my observations.


My price quote based upon the capitalists' permit applications filed 2 years after the very first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not offer the sort of information that we could utilize on this.


For every $100 of increased foreign investment that year, the EB program added one cent. Under a a lot more wobbly statistical base, the initial applications of would-be immigrant investors, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's immigration technique team.




Divine functioned as Chief Counsel of the United States Citizenship read more and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Supervisor. He has worked extensively with the EB-5 program in private practice. He was elected, as I understand, vice president of the Association to Invest in U.S.A., the nationwide industry organization of regional.


DECLARATION 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, Senator Grassley, and others.


At a lot of, if all 10,000 slots were utilized, it would be 1 percent of the immigration annually to the USA. It is not near that yet, but it is expanding and getting towards that. Particularly as USCIS, the firm that oversees the program, has been making the rules clearer and the processes more rational and clear for individuals that are arranging financial investments and for the capitalists who are investing, more individuals have actually agreed and able to place effort and money into the process to find excellent projects and develop them, and then a lot more financiers have actually wanted to spend their money and take the risk and make use of the cash to develop the jobs that is the point of the program.

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These projects do not linger forever, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, actually, they prepare to refute applications that are not certifying. And they do so, as was mentioned


The regional center part of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes a great while to work up a job and after that to get the capitalists approved. And they do not desire their cash flowing with until they have been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the advancement of tasks.

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I would certainly such as to clarify that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. It just is a reality that most of the regional facilities that are merging financial investments have actually established those instead of high joblessness or in backwoods where half- million-dollar financial investments are allowed, which makes feeling.