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The program is positioned in a really odd and non-helpful administrative place for the excitement of worldwide investment in the United States. We are providing away too much for too tiny of a financial investment.


The local centers, with their half-million systems, essentially damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to be concerning producing business entities, not easy financial investments. It must have to do with developing genuine work, not clarify estimations about the indirect creation of tasks, which is currently part of the legislation.


Probably that is one of the reasons it has fallen short every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will enter later if anyone is interested.


This is a firm that likes to claim yes to applicants, yet as the table in my testimony reveals, USCIS officers have a lot extra trouble with EB-5 applications than others. I assume that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high rates of internal denials in this program and completely factor

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Seventh, in this program visas go to individuals who might not obtain them otherwise and to individuals whose planned financial investment is in fact less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Let me broaden on one of my monitorings.


My price quote based on the capitalists' permit applications filed 2 years after the first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not offer the type of data that we might use on this.


For every $100 of boosted foreign investment that year, the EB program contributed one cent. Under a a lot more wobbly analytical base, the initial applications of prospective immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's migration technique team.




Divine acted as Chief Advise of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and then Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive method. He was elected, as I understand, vice president of the Association to Spend in United States, the nationwide industry organization of local centers.


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


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration each year to the USA. It is not near that yet, however it is expanding and getting toward that. Particularly as USCIS, the company that oversees the program, has actually been making the rules clearer and the procedures much more reasonable and clear for the individuals who are organizing financial investments and for the investors who are spending, even more individuals have wanted and able to put effort and cash right into the process to locate great tasks and create them, and afterwards more financiers have been prepared to spend their money and take the danger and utilize the money to create the work that is the point of the program.

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These jobs do not wait about permanently, and USCIS comprehends that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, as a matter of fact, they are all set to refute applications that are website not certifying. And they do so, as was stated


The regional facility part of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiry in September.


The process takes an excellent while to work up a job and after that to get the capitalists approved. And they do not want their cash flowing with till they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of jobs.

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I would love to clarify that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 legislation that belongs to the code. It just is a truth that a lot of the regional facilities that are pooling financial investments have actually set those in places of high unemployment or in country locations where fifty percent- million-dollar investments are enabled, which makes good sense.