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The program is put in a very odd and non-helpful bureaucratic location for the excitement of global investment in the United States. We are providing away also much for as well small of a financial investment.


The regional centers, with their half-million systems, essentially damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, must be concerning developing organization entities, not passive financial investments. It ought to be concerning creating actual jobs, not specify calculations about the indirect production of tasks, which is currently part of the regulation.


Probably that is just one of the reasons why it has failed time after time to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will certainly enter later if anybody is interested.


This is an agency that likes to state yes to candidates, however as the table in my testament reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually really spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely factor

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Seventh, in this program visas go to people that could not obtain them any type of other method and to people whose scheduled financial investment is really much less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Allow me broaden on among my observations.


My quote based on the financiers' eco-friendly card applications submitted 2 years after the first investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not offer the kind of information that we can make use of on this.


So for every single $100 of raised foreign investment that year, the EB program contributed one cent. Under a a lot more shaky statistical base, the first applications of would-be immigrant financiers, USCIS is informing journalists that the level 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 acted as Principal Advice of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which look what i found he was Acting Supervisor, and after that Performing Deputy Director. He has worked thoroughly with the EB-5 program in exclusive technique. He was chosen, as I recognize, vice head of state of the Association to Invest in United States, the national industry organization of regional centers.


Divine, we are happy 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 United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration annually 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 clearer and the processes more rational and clear for the people that are organizing investments and for the investors who are investing, more useful site individuals have been willing and able to put effort and money into the procedure to find excellent jobs and develop them, and then more financiers have wanted to spend why not try here their cash and take the threat and use the cash to develop the jobs that is the factor of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, in reality, they are ready to reject applications that are not certifying. And they do so, as was stated


The regional center component of the program is not. It is part of an appropriations costs that was passed in 1992, and since 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 expiration in September.


The process takes an excellent while to work up a project and after that to obtain the financiers approved. And they do not desire their money flowing via up until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is currently preventing the development 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 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 simply is a reality that a lot of the regional facilities that are pooling investments have established those in places of high joblessness or in backwoods where fifty percent- million-dollar investments are permitted, which makes feeling.