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The program is positioned in a really weird and non-helpful bureaucratic area for the stimulation of international investment in the United States. We are giving away too much for also little of an investment.


The local centers, with their half-million plans, basically damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to have to do with developing company entities, not easy financial investments. It ought to have to do with developing actual work, not specify computations concerning the indirect production of tasks, which is currently part of the legislation.


Possibly that is among the reasons it has actually failed every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of intermediaries, both public and exclusive. The program has even more than its share of rumors, which I will certainly enter into later on if anybody is interested.


This is a company that enjoys to claim yes to applicants, but as the table in my testimony shows, USCIS officers have much more trouble with EB-5 applications than others. I think that is something that nobody has really talked about a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and for good factor

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Seventh, in this program visas go to individuals who can not obtain them any type of other means and to people whose planned financial investment is really less, according to the Federal Get, than the typical mean web worth of all American families in 2007. Allow me expand on one of my monitorings.


My estimate based upon the financiers' eco-friendly card applications submitted 2 years after the first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not supply the kind of data that we could utilize on this.


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

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's migration method group.




Divine functioned as Chief Advice of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was chosen, as I recognize, vice president of the Association to Buy U.S.A., the nationwide sector organization of regional facilities.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., Get the facts CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator page Grassley, and others.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, however it is growing and obtaining toward that. Especially as USCIS, the firm that oversees the program, has actually been making the regulations more clear and the procedures a lot more reasonable and clear for individuals that are organizing investments and for the investors who are spending, even more individuals have been prepared and able to place initiative and cash into the process to discover good projects and establish them, and after that much more investors have actually wanted to invest their money and take the danger and utilize the money to create the work that is the factor of the program.

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These tasks do not wait about permanently, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, in truth, they are prepared to refute applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It is look at these guys part of an appropriations bill that was passed in 1992, and given that then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiry in September.


The process takes a great while to develop a task and after that to get the capitalists approved. And they do not desire their cash moving with until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the growth of tasks.

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I would certainly such as to clarify that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 legislation that is part of the code. It simply is a reality that the majority of the regional facilities that are pooling investments have actually established those in places of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.