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The program is positioned in a very strange and non-helpful governmental location for the stimulation of worldwide financial investment in the United States. We are providing away as well much for too little of an investment.

The regional centers, with their half-million plans, basically undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should be concerning producing business entities, not easy investments. It should be concerning developing genuine jobs, not specify estimations about the indirect creation of work, which is currently component of the legislation.


Possibly that is among the reasons it has fallen short time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also full of middlemen, both public and personal. The program has even more than its share of scandals, which I will certainly enter into later on if anybody is interested.


This is a firm that likes to state yes to applicants, but as the table in my statement shows, USCIS officers have a lot a lot more problem with EB-5 applications than others. I assume that is something that no one has actually actually discussed a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and for good factor

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Seventh, in this program visas most likely to individuals that might not obtain them otherwise and to individuals whose organized investment is actually much less, according to the Federal Reserve, than the average mean web worth of all American households in 2007. Allow me broaden on among my monitorings.


My quote based on the investors' permit applications filed 2 years after the very first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not supply the type of data that we could make use of on this.


So for every single $100 of raised international investment that year, the EB program contributed one dime. Under a much more wobbly statistical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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

Divine worked as Chief Guidance of the United States Citizenship and Migration Providers more info from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was chosen, as I recognize, vice president of the Association to Invest in U.S.A., the national industry organization of local.


Divine, we are delighted to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were used, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the company that oversees the program, has been making the regulations clearer and the processes more logical and clear for individuals who are arranging investments and for the capitalists who are investing, more individuals have wanted and able to place effort and money into the procedure to locate good tasks and create them, and after that more capitalists have actually wanted to invest their cash and take the threat and make use of the money to create the tasks that is the factor of the program.

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These projects do not linger forever, and USCIS understands that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, in reality, they are ready to deny applications that are not qualifying. And they do so, as was stated

The regional center component of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes a good while to develop a project and afterwards to obtain the investors approved. And they do not want their cash moving with till they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the growth of tasks.

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I wish to make clear 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 normal EB-5 law that becomes part of the code. It just is a truth that a lot of the local centers that are pooling financial investments have actually set those in locations of high joblessness or in rural areas where fifty percent- million-dollar investments are allowed, which makes good sense.