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The program is put in a really odd and non-helpful administrative place for the stimulation of worldwide financial investment in the United States. We are offering away also much for as well tiny of a financial investment.


The local centers, with their half-million systems, essentially undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, must have to do with developing company entities, not passive financial investments. It should be about producing real tasks, not elaborate calculations about the indirect development of jobs, which is now component of the regulations.


Probably that is among the reasons that it has fallen short every 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 middlemen, both public and private. The program has even more than its share of scandals, which I will certainly get involved in later if any person is interested.


This is an agency that likes to claim yes to applicants, but as the table in my testimony shows, USCIS officers have far more difficulty with EB-5 applications than others. I assume that is something that nobody has really spoken around much. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals that can not obtain them otherwise and to individuals whose scheduled investment is actually much less, according to the Federal Reserve, than the ordinary mean total assets of all American households in 2007. Let me expand on among my monitorings.


My price quote based on the financiers' permit applications filed 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 confirmed-- that is my estimate. USCIS does not offer the kind of information that we can utilize on this.


So for every single $100 of raised international investment that year, the EB program added one cent. Under a far more shaky statistical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's immigration technique group.




Divine acted as Principal Counsel of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Director, and then Acting Replacement Director. He has actually functioned thoroughly with the EB-5 program in personal practice. He was chosen, as I understand, vice head of state of the Organization to Spend in USA, the national industry association of regional centers.


Divine, we are happy to have you right here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and getting toward that. Specifically as USCIS, the company that oversees the program, has been making the policies more clear and the procedures much more reasonable and clear for individuals that are arranging investments and for the capitalists who are spending, more individuals have actually wanted and able to place effort and money into the procedure to find great jobs and create them, and then a lot more capitalists have agreed to spend their money and take the threat and use the money to produce the work that is the point of the program.

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These tasks do more info not linger for life, and USCIS recognizes that and are trying to speed up 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 ready to deny applications that are not qualifying. And they do so, as was mentioned


The regional center component of the program is not. It is part of an appropriations expense that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes a great while to develop a job and afterwards to get the financiers approved. And they do not want their cash moving with till they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently preventing the growth of projects.

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I would certainly such as to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 regulation that belongs to the code. It simply is a truth that many of the local facilities that are merging financial investments have actually set those instead of high unemployment or in rural areas where fifty percent- million-dollar investments are allowed, which makes good sense.