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The program is positioned in a very strange and non-helpful bureaucratic area for the stimulation of worldwide investment in the United States. We are providing away too much for as well tiny of an investment.


The local centers, with their half-million plans, essentially undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should be concerning producing business entities, not easy investments. It needs to be about producing genuine work, not elaborate computations concerning the indirect production of jobs, which is currently part of the regulation.


Perhaps that is among the reasons that it has failed year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well filled up with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will certainly obtain right into later on if any person is interested.


This is a firm that enjoys to say yes to applicants, but as the table in my testimony shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals who could not obtain them any kind of various other way and to people whose planned financial investment is in fact much less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Let me expand on one of my observations.


My price quote based on the financiers' environment-friendly card applications submitted 2 years after the very first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not give the kind of information that we could utilize on this.


For every $100 of raised foreign financial investment that year, the EB program contributed one penny. Under a far more wobbly statistical base, the first applications of potential immigrant capitalists, USCIS is telling reporters that the level 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 immigration practice group.




Divine functioned as Principal Counsel of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice president of the Organization to Spend in United States, the national sector organization of local.


Divine, we are happy to have you below. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY 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 migration every year to the United States. It is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the firm that supervises the program, has been making the rules more clear and the processes a lot more reasonable and clear for the individuals who are organizing investments and for the investors that are spending, even more people have agreed and able to put initiative and money into the process to locate good tasks and establish them, and after that more investors have actually wanted to a fantastic read invest their money and take the threat and use the cash to create the jobs that is the factor of the program.

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These jobs do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, in truth, they are all set to deny applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It becomes part of an appropriations costs that helpful hints was enacted in 1992, and since then that program has actually been extended five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiry in September.


The process takes a great while to function up a task and after that to get the financiers authorized. And they do not desire their cash streaming through until anchor they have been approved. And the specter of the expiry of this Regional Center Program in September is already discouraging the advancement of tasks.

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I would love to clarify that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 legislation that belongs to the code. It simply is a reality that many of the regional facilities that are pooling financial investments have actually set those instead of high unemployment or in country areas where fifty percent- million-dollar investments are enabled, which makes sense.