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The program is placed in a really strange and non-helpful administrative area for the excitement of worldwide investment in the United States. We are providing away as well much for also tiny of a financial investment.


The regional facilities, with their half-million plans, essentially damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to have to do with producing business entities, not easy investments. It needs to be regarding creating genuine jobs, not elaborate estimations about the indirect development of tasks, which is now part of the regulation.


Possibly that is one of the reasons that it has fallen short time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of middlemen, both public and personal. The program has even more than its share of detractions, which I will enter later on if anyone is interested.


This is an agency that likes to claim yes to candidates, however as the table in my testimony shows, USCIS policemans have much extra trouble with EB-5 applications than others. I believe that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently reason

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Seventh, in this program visas go to people who might not obtain them otherwise and to people whose organized financial investment is really less, according to the Federal Book, than the average mean total assets of all American households in 2007. Allow me expand on one of my monitorings.


My price quote based upon the investors' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not offer the sort of information that we can use on this.


For every $100 of raised foreign investment that year, the EB program contributed one penny. Under a far more wobbly statistical base, the first applications of prospective immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let 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 group.




Divine worked as Chief Advice of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Supervisor. He has worked extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice head of state of the Organization to Spend in USA, the national industry association of local.


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


At a lot of, if all 10,000 slots were used, it would be 1 percent of the immigration annually to the USA. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the company that manages the program, has been making the policies more clear and the procedures extra sensible and clear for individuals who are arranging investments and for the financiers that are investing, even more people have actually been prepared and able to put effort and cash right into the procedure to locate excellent jobs and develop them, and then more investors have actually wanted to invest their cash and take the risk and utilize the cash to create the work that is the factor of the program.

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These tasks do not linger forever, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, as a matter of fact, they are prepared to reject applications that are not qualifying. And they do so, as was mentioned


The regional facility part of the program is not. It is component of an appropriations expense that was established in 1992, and considering that then that program has been expanded 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 function up a job and after that to get the financiers accepted. And they do not want their cash flowing with till they have been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the growth of projects.

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I wish 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 routine EB-5 legislation that is component of the code. It simply is a truth that most of the regional centers that are pooling investments have actually established those in places of high joblessness or in country locations where half- million-dollar financial investments are enabled, which here makes good sense.