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The program is positioned in a really odd and non-helpful bureaucratic area for the excitement of worldwide financial investment in the United States. We are giving away too much for too little of a financial investment.


The local facilities, with their half-million schemes, basically damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to have to do with creating organization entities, not easy investments. It ought to be concerning developing actual jobs, not specify computations concerning the indirect creation of tasks, which is now part of the regulation.


Perhaps that is one of the reasons it has failed year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also full of intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will certainly enter later on if anybody is interested.


This is a company that enjoys to say yes to candidates, yet as the table in my testimony reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I assume that is something that no one has actually truly talked around much. 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 go to people that could not obtain them any type of various other means and to people whose planned financial investment is in fact less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Allow me broaden on among my observations.


My price quote based upon the investors' environment-friendly card applications submitted 2 years after the very first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not supply the sort of data that we can utilize on this.


So for each $100 of enhanced foreign investment that year, the EB program contributed one penny. Under a much extra wobbly statistical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the degree of financial investment in the just-concluded year was concerning $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 company's immigration technique group.




Divine functioned as Principal Counsel of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and then Acting Deputy Supervisor. He has functioned extensively with the EB-5 program secretive practice. He was elected, as I comprehend, vice president of the Organization to Purchase USA, the national market association of local facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, but it is growing and getting towards that. Specifically as USCIS, the agency that manages the program, has been making the rules clearer and the procedures much more rational and clear for the individuals that are organizing investments and for the investors that are spending, more people have been willing and able to put initiative and money right into the procedure to find great jobs and create them, and afterwards a lot more financiers have agreed to spend their money and take the threat and utilize the cash to produce the tasks that is the factor of the program.

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These tasks do not wait about for life, and USCIS recognizes that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing check here their examination, and, as a matter of fact, they are ready to deny applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It belongs to an appropriations bill that was established in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes a great while to function up a project and after that to get the capitalists accepted. And they do not want their cash streaming with up until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently preventing the growth of tasks.

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I would love to clear up that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 legislation that becomes part of the code. It just is a truth that many of the local facilities that are pooling financial investments have actually established those instead of high joblessness or in country areas where half- million-dollar investments are allowed, which makes good sense.