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Initially, the program is placed in an extremely weird and non-helpful bureaucratic place for the excitement of international investment in the United States. Second, its scale is all wrong. We are distributing excessive for too small of a financial investment. Better, raising venture funding fifty percent a million bucks a tranche is, to state the least, ineffective.


The local facilities, with their half-million schemes, basically undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should have to do with developing service entities, not passive financial investments. It should be regarding creating real tasks, not specify computations regarding the indirect production of tasks, which is now component of the legislation.


Probably that is among the factors why it has failed year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with intermediaries, both public and private. The program has greater than its share of scandals, which I will certainly get involved in later on if anybody is interested.


This is a company that enjoys to say yes to candidates, but as the table in my statement reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually discussed a lot. 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 go to people who can not obtain them otherwise and to individuals whose scheduled investment is actually less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Allow me increase on among my monitorings.


My price quote based upon the financiers' eco-friendly card applications submitted 2 years after the very first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not give the sort of information that we can make use of on this.


For every $100 of raised international investment that year, the EB program contributed one dime. Under a far more unsteady statistical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's migration technique group.




Divine worked as Principal Guidance of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program secretive technique. He was elected, as I understand, vice head of state of the Association to Spend in U.S.A., the nationwide market association of local.


Divine, we are pleased to have you here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, however it is expanding and obtaining towards that. Particularly as USCIS, the agency that supervises the program, has been making the guidelines clearer and the processes much more rational and clear for individuals who are organizing investments and for the financiers who are investing, even more individuals have been eager and able to put effort and cash right into the process to find great projects and develop them, and after that more financiers have actually agreed to invest their money and take the danger and make use of the money to produce the tasks that is the factor of the program.

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These jobs do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was stated


The regional facility part of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time check here for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes an excellent while to work up a task and then to obtain the investors authorized. And they do not desire their money streaming through up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already dissuading the growth of projects.

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I would love to clear up 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 regulation that belongs to the code. It simply is a fact that a lot of the regional facilities that are pooling financial investments have actually established those in locations of high unemployment or in country locations where half- million-dollar investments are permitted, and that makes good sense.