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The program is positioned in a really strange and non-helpful administrative place for the stimulation of worldwide financial investment in the United States. We are giving away too much for too small of a financial investment.

The regional centers, with their half-million schemes, basically damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to be regarding producing business entities, not easy financial investments. It should have to do with developing actual jobs, not elaborate calculations regarding the indirect development of jobs, which is now component of the legislation.

Perhaps that is one of the reasons it has stopped working year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too loaded with intermediaries, both public and private. The program has even more than its share of scandals, which I will certainly get involved in later on if anyone is interested.

This is an agency that loves to state yes to applicants, but as the table in my testimony reveals, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually discussed much. EB5 Regional Center Program. There are high prices of inner denials in this program and permanently factor

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Seventh, in this program visas go to individuals that could not get them any kind of various other method and to people whose organized financial investment is really much less, according to the Federal Get, than the typical mean net well worth of all American households in 2007. Let me expand on one of my observations.

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

So for every $100 of boosted international financial investment that year, the EB program added one cent. Under a a lot more wobbly statistical base, the preliminary applications of potential immigrant financiers, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's immigration practice team.


Divine served as Chief Advise of the USA Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Director. He has worked extensively with the EB-5 program here secretive practice. He was elected, as I understand, vice head of state of the Organization to Spend in United States, the nationwide sector organization of regional.

STATEMENT OF ROBERT C. DIVINE, LAWYER, 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, Legislator Grassley, and others.

At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, yet it is growing and obtaining towards that. Especially as USCIS, the company that manages the program, has actually been making the guidelines clearer and the procedures much more logical and clear for individuals who are arranging financial investments and for the capitalists who are investing, more individuals have been ready and able to put initiative and money into the procedure to locate great projects and develop them, and after that much more investors have been eager to spend their cash and take the risk and use the cash to create 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 attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, actually, they are ready to deny applications that are not qualifying. And they do so, as was mentioned

The regional center part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and because then that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiration in September.

The procedure takes an excellent while to function up a task and afterwards to obtain the investors authorized. And they do not desire their cash moving via till they have been approved. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of jobs.

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I want to clarify 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 feature of the routine EB-5 regulation that is part of the code. It simply is a reality that the majority of the regional facilities that are merging financial investments have set those in places of high unemployment or in country locations where fifty percent- million-dollar investments are permitted, and that makes sense.

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