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First, the program is placed in a very strange and non-helpful governmental place for the stimulation of worldwide investment in the USA. Second, its range is all wrong. We are giving away way too much for also little of a financial investment. Better, raising endeavor resources fifty percent a million bucks a tranche is, to state the least, ineffective.

The local centers, with their half-million schemes, basically undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to have to do with producing business entities, not easy financial investments. It needs to be regarding developing genuine work, not clarify calculations regarding the indirect development of work, which is now component of the regulations.

Probably that is one of the factors why it has stopped working time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with intermediaries, both public and private. The program has more than its share of detractions, which I will enter later on if anyone is interested.

This is a firm that loves to claim yes to applicants, yet as the table in my testimony shows, USCIS police officers have much a lot more problem with EB-5 applications than others. I think that is something that nobody has actually actually talked about a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and for excellent reason

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Seventh, in this program visas most likely to people who might not obtain them differently and to individuals whose planned investment is actually less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Let me increase on one of my monitorings.

My price quote based on the financiers' permit applications submitted 2 years after the initial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not offer the sort of information that we could use on this.

So for every single $100 of boosted international investment that year, the EB program added one cent. Under a much extra unsteady analytical base, the first applications of would-be immigrant capitalists, USCIS is telling journalists that the level of investment in the just-concluded year was about $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 migration technique group.


Divine worked as Chief Advise of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Director. He has actually worked extensively with the EB-5 program secretive method. He was elected, as I comprehend, vice head of state of the Association to Spend in United States, the national market association of regional.

Divine, we are delighted to have you below. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank more info you for having me.

At many, if all 10,000 slots were made use of, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is expanding and obtaining toward that. Specifically as USCIS, the firm that manages the program, has been making the rules clearer and the processes more logical and clear for individuals who are arranging investments and for the capitalists that are investing, more individuals have actually been eager and able to place initiative and cash right into the procedure to discover great projects and create them, and after that much more financiers have actually agreed to invest their cash and take the threat and use the money to produce the tasks that is the point of the program.

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These jobs do not linger forever, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, as a matter of fact, they are all set to refute applications that are not qualifying. And they do so, as was discussed

The regional center part of the program is not. It is part of an appropriations costs that was established in 1992, and considering that then that program has actually been prolonged five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.

The procedure takes a great while to work up a task and then to obtain the capitalists accepted. And they do not want their cash flowing through until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the advancement of projects.

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I would love to make clear that the Regional Center Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 regulation that belongs to the code. It just is a fact that a lot of the local centers that are pooling financial investments have set those in areas of high joblessness or in country locations where fifty percent- million-dollar financial investments are allowed, and that makes good sense.

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