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First, the program is positioned in a really odd and non-helpful governmental area for the stimulation of international financial investment in the United States. Second, its range is all wrong. We are giving away way too much for too tiny of an investment. Further, raising financial backing half a million dollars a tranche is, to state the least, inefficient.


The local facilities, with their half-million plans, basically undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to be regarding producing company entities, not easy financial investments. It needs to have to do with developing real jobs, not clarify estimations regarding the indirect creation of work, which is currently component of the regulation.


Perhaps that is just one of the reasons why it has failed time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also filled with intermediaries, both public and private. The program has more than its share of rumors, which I will enter into later if anyone is interested.


This is a firm that loves to state yes to applicants, however as the table in my statement reveals, USCIS officers have a lot more problem with EB-5 applications than others. I assume that is something that no one has really talked around much. EB5 Regional Center Program. There are high rates of interior denials in this program and for great factor

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Seventh, in this program visas go to people that might not get them otherwise and to individuals whose planned investment is actually much less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Let me increase on one of my monitorings.


My price quote based upon the capitalists' permit applications submitted 2 years after the initial financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not supply the kind of data that we might use on this.


So for every single $100 of boosted foreign financial investment that year, the EB More Bonuses program contributed one penny. Under a far more unsteady analytical base, the preliminary applications of prospective immigrant capitalists, 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 company's immigration practice group.




Divine functioned as Principal Advice of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Director. He has actually functioned extensively with the EB-5 program secretive method. He was elected, as I recognize, vice president of the Association to Invest in USA, the national industry organization of regional centers.


Divine, we are delighted to have you right here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, however it is growing and getting toward that. Especially as USCIS, the company that oversees the program, has been making the guidelines more clear and the procedures a lot more rational and clear for individuals who are helpful resources arranging investments and for the investors that are investing, more people have wanted and able to place initiative and cash into the process to locate great jobs and develop them, and afterwards extra financiers have agreed to invest their cash and take the danger and utilize the cash to produce the jobs that is the factor of Going Here the program.

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


The local facility part of the program is not. It is component of an appropriations bill that was passed in 1992, and considering that then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a job and after that to obtain the investors approved. And they do not desire their cash flowing via up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already dissuading the growth of jobs.

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I wish to make clear that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 regulation that becomes part of the code. It simply is a fact that a lot of the local facilities that are pooling financial investments have established those in places of high unemployment or in rural locations where fifty percent- million-dollar financial investments are allowed, which makes good sense.