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The program is positioned in an extremely weird and non-helpful bureaucratic location for the excitement of international investment in the United States. We are giving away too much for too small of an investment.


The regional facilities, with their half-million schemes, basically damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, need to have to do with developing organization entities, not passive financial investments. It should be about developing real jobs, not elaborate computations regarding the indirect development of work, which is currently part of the regulation.


Probably that is just one of the reasons that it has fallen short every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with middlemen, both public and personal. The program has even more than its share of rumors, which I will enter later if any person is interested.


This is an agency that loves to state yes to candidates, yet as the table in my testimony shows, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that no one has actually truly spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and completely reason

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Seventh, in this program visas most likely to people that could not get them differently and to individuals whose scheduled investment is actually much less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Let me broaden on among my monitorings.


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


For every $100 of raised foreign investment that year, the EB program contributed one dime. Under a much a lot more wobbly statistical base, the preliminary applications of prospective immigrant investors, USCIS is telling journalists that the degree of investment in the just-concluded year was regarding $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 migration practice team.




Divine functioned as Chief Guidance of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program in personal technique. He was chosen, as I understand, vice president of the Organization to Invest in U.S.A., the national market organization of local.


Divine, we are delighted to have you here. 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 U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were utilized, it would be 1 percent of the More Bonuses immigration every year to the USA. It is not near that yet, yet it is expanding and getting towards that. Specifically as USCIS, the agency that supervises the program, has actually been making the guidelines clearer and the procedures extra logical and clear for individuals who are arranging financial investments and for the financiers that are spending, even more people have agreed and able to put effort and money into the procedure to discover great tasks and create them, and after that more capitalists have been willing to spend their cash and take the danger and utilize the money to create the jobs that is the point of the program.

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These tasks do not linger forever, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they are ready to reject applications that are not certifying. And they do so, as was discussed


The local facility part of the program is not. It is part of an appropriations expense that was established in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes an excellent while to function up a job and afterwards to get the financiers authorized. And they do not desire their money flowing with up until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is already preventing the growth of tasks.

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I would read this such as to clear up that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It simply is a fact that a lot of the local centers that a knockout post are pooling financial investments have set those in areas of high unemployment or in country areas where fifty percent- million-dollar investments are allowed, which makes sense.