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The program is positioned in a very odd and non-helpful administrative place for the excitement of worldwide financial investment in the United States. Second, its range is all wrong. We are giving away excessive for also little of a financial investment. Better, raising equity capital fifty percent a million bucks a tranche is, to say the least, inefficient.


The regional centers, with their half-million systems, basically damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should have to do with developing business entities, not passive financial investments. It needs to have to do with producing actual tasks, not elaborate estimations concerning the indirect development of tasks, which is now component of the regulations.


Perhaps that is just one of the reasons that it has fallen short every year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too filled with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will get involved in later on if anyone is interested.


This is a company that likes to say yes to applicants, however as the table in my testimony reveals, USCIS officers have a lot more problem with EB-5 applications than others. I believe that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely factor

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Seventh, in this program visas most likely to people that could not obtain them any kind of other way and to people whose planned investment is in fact less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Allow me broaden on one of my observations.


My quote based upon the financiers' permit applications filed 2 years after the initial financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not offer the kind of information that we might utilize on this.


So for every $100 of raised international financial investment that year, the EB program added one cent. Under a a lot more shaky statistical base, the preliminary applications of prospective immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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




Divine offered as Chief Guidance of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Performing Deputy Director. He has worked extensively with the EB-5 program secretive method. He was elected, as I recognize, vice head of state of the Organization to Buy U.S.A., the national market organization of local centers.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., look at here now CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the migration each year to the USA. It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the company that manages the program, has been making the policies more clear and the processes more rational and clear for individuals who are arranging financial investments and for the financiers that are investing, even more people have actually wanted and able to put initiative and money right into the procedure to find good tasks and develop them, and then much more investors have wanted to invest their money and take the threat and make use of the cash to produce the tasks that is the factor 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 procedure - EB5 Regional Center Program. That does not mean that they are unwinding her comment is here their examination, and, in truth, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional center component of the program is not. It is component of an appropriations expense that was established in 1992, and because then that program has her latest blog actually been extended 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to develop a project and after that to obtain the financiers accepted. And they do not want their money moving through up until they have been approved. And the specter of the expiry of this Regional Center Program in September is currently discouraging the growth of jobs.

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I wish to clarify that the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 law that belongs to the code. It simply is a truth that most of the local centers that are merging investments have actually established those in places of high joblessness or in rural locations where fifty percent- million-dollar financial investments are permitted, and that makes sense.