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First, the program is put in a very odd and non-helpful bureaucratic place for the excitement of international financial investment in the USA. Second, its scale is all wrong. We are giving away too much for too tiny of an investment. Further, increasing endeavor capital half a million bucks a tranche is, to claim the least, ineffective.


The local facilities, with their half-million schemes, essentially damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to be regarding developing company entities, not easy financial investments. It should be concerning producing actual work, not clarify computations regarding the indirect production of work, which is currently component of the legislation.


Probably that is just one of the factors why it has fallen short year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well filled up with intermediaries, both public and private. The program has more than its share of detractions, which I will certainly get involved in later on if anyone is interested.


This is a company that loves to claim yes to candidates, but as the table in my testimony reveals, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has really spoken about much. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely factor

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Seventh, in this program visas most likely to individuals that can not obtain them any type of other way and to people whose planned financial investment is really less, according to the Federal Book, than the average mean net worth of all American family members in 2007. Let me broaden on one of my observations.


My price quote based on the financiers' permit applications submitted 2 years after the first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not give the kind of data that we can use on this.


For every $100 of enhanced foreign investment that year, the EB program contributed one dime. Under a far more shaky statistical base, the visit their website first applications of potential immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was regarding $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 firm's migration practice group.




Divine offered as Chief Advice of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Supervisor. He has functioned thoroughly with the EB-5 program in exclusive practice. He was chosen, as I recognize, vice president of the Organization to Invest in USA, the nationwide industry organization of local facilities.


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, Senator Grassley, and others.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the migration each year to the United States. It is not near that yet, additional resources yet it is expanding and obtaining towards that. Particularly as USCIS, the agency that supervises the program, has been making the regulations clearer and the procedures more logical and clear for individuals who are arranging investments and for the capitalists that are investing, more individuals have agreed and able to put effort and money into the process to locate excellent jobs and develop them, and after that a lot more financiers have actually been eager to invest their cash and take the threat and use the cash to develop the tasks that is the point of the program.

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These jobs do not linger for life, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, in reality, they are all set to reject applications that are not qualifying. And they visit do so, as was pointed out


The local center component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and considering that then that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes an excellent while to function up a job and after that to obtain the investors approved. And they do not want their money streaming with up until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the development of projects.

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I would love to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 regulation that belongs to the code. It just is a reality that most of the regional facilities that are merging financial investments have actually established those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, and that makes sense.