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The program is placed in a very strange and non-helpful bureaucratic area for the excitement of worldwide financial investment in the United States. We are offering away too much for also small of an investment.


The local centers, with their half-million schemes, essentially undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must be about developing service entities, not passive financial investments. It must have to do with developing real tasks, not specify estimations regarding the indirect development of work, which is currently part of the legislation.


Maybe that is one of the reasons it has actually fallen short time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well loaded with intermediaries, both public and private. The program has greater than its share of rumors, which I will enter into later if anyone is interested.


This is a company that likes to claim yes to candidates, yet as the table in my testimony shows, USCIS police officers have a lot extra problem with EB-5 applications than others. I think that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and completely factor

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Seventh, in this program visas go to individuals that can not get them any other method and to people whose planned financial investment is in fact less, according to the Federal Reserve, than the ordinary mean web well worth of all American families in 2007. Let me increase on one of my observations.


My price quote based upon the investors' copyright applications submitted 2 years after the initial financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the type of data that we can make use of on this.


So for every single $100 of raised international financial investment that year, the EB program added one dime. Under a a lot more unsteady statistical base, the first applications of prospective immigrant capitalists, USCIS is informing journalists 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 you for paying attention to me. Chairman Leahy. He is the head of the company's immigration technique group.




Divine acted as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program in private technique. He was chosen, as I recognize, vice president of the Organization to Spend in USA, the national market association of regional.


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


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, but it is expanding and obtaining toward that. Specifically as USCIS, the company that oversees the program, has actually been making the rules more clear and the processes more rational and clear for the people that are arranging investments and for the financiers that are spending, even more people have agreed and able to place initiative and cash into the procedure to find good tasks and develop them, and after that extra financiers have agreed to invest their cash and EB5 Regional Center Program take the threat and make use of the cash to develop the jobs that is the point of the program.

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These jobs do not wait about for life, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, in fact, they are ready to refute applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It is part of an appropriations bill that was enacted in 1992, and since then that program has been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes a good while to develop a project and afterwards to obtain the capitalists authorized. And they do not want their cash moving with till they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the advancement of projects.

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I would love to clarify that the Regional Facility Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It simply is a reality that many of the local centers that are pooling financial investments have actually established those in places of high joblessness or in backwoods where fifty percent- million-dollar investments are permitted, which makes feeling.