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First, the program is placed in a very weird and non-helpful administrative area for the stimulation of international investment in the United States. Second, its range is all wrong. We are distributing way too much for too little of a financial investment. Even more, raising endeavor capital fifty percent a million dollars a tranche is, to claim the least, ineffective.


The local facilities, with their half-million plans, essentially damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to be regarding developing service entities, not easy financial investments. It must be concerning creating actual work, not clarify estimations about the indirect development of jobs, which is now component of the legislation.


Perhaps that is among the reasons it has actually stopped working time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of middlemen, both public and private. The program has even more than its share of scandals, which I will enter later if anyone is interested.


This is a company that likes to say yes to candidates, but as the table in my testimony shows, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that no one has really spoken about much. EB5 Regional Center Program. There are high rates of internal denials in this program and completely reason

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Seventh, in this program visas most likely to individuals who can not obtain them otherwise and to individuals whose scheduled financial investment is in fact less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Allow me expand on among my observations.


My quote based upon the investors' copyright applications submitted 2 years after the very first investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not give the type of data that we can make use of on this.


So for every single $100 of boosted foreign investment that year, the EB program added one dime. Under a a lot more wobbly statistical base, the first look at this web-site applications of potential immigrant capitalists, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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




Divine acted as Principal Counsel of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Supervisor. He has worked extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice head of state of the Organization to Invest in United States, the nationwide market association of regional facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 ports were utilized, it additional reading would be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is growing and getting towards that. Especially as USCIS, the firm that manages the program, has been making the regulations more clear and the procedures extra logical and clear for the people that are arranging financial investments and for the financiers that are spending, even more individuals have actually wanted and able to put initiative and cash into the process to locate great tasks and establish them, and then a lot more capitalists have actually been willing to invest their money and take the threat and use the cash to develop the jobs that is the point of the program.

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These projects do not linger for life, and USCIS recognizes that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they find are unwinding their examination, and, in fact, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The regional center component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and considering that then that program has actually been extended five 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 procedure takes a good while to work up a job and after that to obtain the capitalists authorized. And they do not desire their cash flowing through until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is already dissuading the development of tasks.

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I would like to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 law that belongs to the code. It just is a reality that a lot of the regional centers that are pooling financial investments have established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes feeling.