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The program is placed in an extremely odd and non-helpful administrative area for the stimulation of global financial investment in the United States. We are providing away too much for also little of a financial investment.


The regional centers, with their half-million plans, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with producing business entities, not easy investments. It must have to do with developing genuine tasks, not clarify computations regarding the indirect creation of work, which is currently part of the legislation.


Probably that is among the reasons it has actually stopped working year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of intermediaries, both public and private. The program has even more than its share of detractions, 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 shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I think that is something that no one has really chatted around much. EB5 Regional Center Program. There are high rates of interior denials in this program and completely reason

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Seventh, in this program visas most likely to individuals who could not get them otherwise and to people whose planned investment is actually less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Allow me increase on among my observations.


My estimate based on the financiers' eco-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not offer the sort of data that we could utilize on this.


So for every $100 of increased international investment that year, the EB program contributed one cent. Under a far more wobbly statistical base, the preliminary applications of potential immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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




Divine functioned as Chief Counsel of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Director, and then Acting Deputy Director. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I understand, vice president of the Association to Spend in United States, the nationwide market organization of regional.


Divine, we are happy to have you here. Please go ahead, 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. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were used, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, yet it is growing and getting towards that. Especially as USCIS, the agency that supervises the program, has been making the rules clearer and the procedures extra reasonable and clear for individuals who are organizing financial investments and for the investors who are spending, more individuals have actually wanted and able to place initiative and cash into the process to discover excellent tasks and create them, and afterwards much more investors have actually been ready to invest their money and take the risk and use the money to create the tasks that is the factor of the program.

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These jobs do not wait around for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, click here and, actually, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The regional facility part of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to develop a job and then to get the financiers approved. And they do not desire their money moving with until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the advancement of tasks.

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I would love to make clear that the Regional Center Program is not the same as the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 law that becomes part of the code. It just is a reality that many of the regional centers that are merging financial investments have actually established those in places of high unemployment or in rural locations where half- million-dollar investments are allowed, which makes sense.