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The program is placed in a really odd and non-helpful governmental place for the stimulation of worldwide investment in the United States. We are giving away too much for as well small of an investment.


The local centers, with their half-million plans, essentially damaged the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be about creating service entities, not easy investments. It needs to have to do with producing genuine work, not elaborate computations about the indirect development of work, which is now part of the regulations.


Perhaps that is just one of the reasons it has failed year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with middlemen, both public and exclusive. The program has even more than its share of detractions, which I will get involved in later on if anybody is interested.


This is a firm that enjoys to state yes to applicants, yet as the table in my testimony shows, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that no one has actually discussed much. EB5 Regional Center Program. There are high prices of internal rejections in this program and for great reason

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Seventh, in this program visas most likely to people that could not get them otherwise and to individuals whose organized investment is actually much less, according to the Federal Get, than the average mean total assets of all American households in 2007. Let me broaden on among my observations.


My price quote based upon the financiers' permit 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 concerning $191 million validated-- that is my price quote. USCIS does not supply the kind of data that we can use on this.


So for every $100 of raised foreign financial investment that year, the EB program contributed one dime. Under a much more shaky statistical base, the initial applications of prospective immigrant investors, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank here you for paying attention to me. Chairman Leahy. He is the head of the firm's migration technique team.




Divine worked as Principal Advise of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive method. He was elected, as I recognize, vice head of state of the Association to Spend in U.S.A., the nationwide market association of regional.


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


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is expanding and getting towards that. Specifically as USCIS, the firm that looks after the program, has been making the policies more clear and the procedures more rational and clear for the individuals that are arranging investments and for the investors that are spending, even more individuals have agreed and able to place effort and cash right into the process to locate great projects and develop them, and after that extra investors have been eager to spend their cash and take the risk and use the money to create the jobs that is the factor of the program.

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These projects do not linger for life, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, in reality, they are ready to deny applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It is component of an appropriations bill that was enacted in 1992, and ever since that program has been prolonged 5 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 work up a project and afterwards to obtain the capitalists accepted. And they do not desire their money flowing through till they have been approved. And the specter of the expiration of this Regional Center Program in September is already discouraging the growth of jobs.

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I would such as to clarify that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It simply is a reality that many of the local centers that are merging financial investments have actually set those in locations of high joblessness or in country locations where half- million-dollar financial investments are enabled, and that makes good sense.