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The program is placed in an extremely odd and non-helpful bureaucratic area for the excitement of worldwide investment in the United States. We are offering away also much for as well little of an investment.


The regional facilities, with their half-million plans, basically damaged the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should have to do with producing company entities, not easy financial investments. It should be regarding producing real work, not elaborate estimations regarding the indirect creation of jobs, which is currently component of the legislation.


Probably that is one of the reasons that it has actually failed time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also full of intermediaries, both public and personal. The program has greater than its share of scandals, which I will enter into later on if any person is interested.


This is a company that enjoys to claim yes to applicants, yet as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually really discussed 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 go to individuals that might not obtain them any various other way and to individuals whose scheduled financial investment is in fact 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 estimate based upon the financiers' permit applications submitted 2 years after the initial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not offer the sort of data that we might use on this.


So for each $100 of raised foreign investment that year, the EB program added one cent. Under a a lot more shaky analytical base, the first applications of prospective immigrant investors, USCIS is telling reporters that the level of financial investment in the just-concluded year was about $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 worked as Principal Advice of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Acting Deputy Director. He has functioned thoroughly with the EB-5 program in exclusive technique. He was elected, as I recognize, vice president of the Organization to Invest in U.S.A., the nationwide industry association of local.


Divine, we are pleased to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, 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. you could try here Thanks for having me.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the migration annually to the United States. It is not near that yet, yet it is expanding and obtaining towards that. Particularly as USCIS, the agency that oversees the program, has actually been making the regulations clearer and the procedures a lot more sensible and clear for the people who are organizing financial investments and for the capitalists that are spending, more people have wanted and able to put effort and money into the procedure to locate great jobs and establish them, and after that much more capitalists have actually been eager to spend their cash and take the threat and make use of the cash to develop the tasks that is the point of the program.

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These jobs do not linger forever, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, actually, they are all set to deny applications moved here that are not certifying. And they do so, as was stated


The local center part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since that program great post to read has actually been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiry in September.


The process takes a great while to function up a task and afterwards to get the capitalists approved. And they do not want their money flowing with up until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the development of projects.

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I would certainly like to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a reality that most of the regional facilities that are merging investments have established those in locations of high unemployment or in rural areas where fifty percent- million-dollar financial investments are allowed, which makes sense.