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The program is placed in a very odd and non-helpful administrative location for the stimulation of worldwide financial investment in the United States. We are providing away as well much for as well little of a financial investment.


The local centers, with their half-million plans, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, should be concerning developing service entities, not easy financial investments. It needs to be regarding producing genuine work, not elaborate estimations regarding the indirect development of tasks, which is currently part of the legislation.


Probably that is one of the reasons it has failed time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with middlemen, both public and personal. The program has greater than its share of scandals, which I will enter into later on if anyone is interested.


This is an agency that likes to say yes to applicants, but as the table in my statement reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually truly spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas go to individuals that can not obtain them any kind of other means and to people whose organized financial investment is in fact less, according to the Federal Reserve, than the ordinary mean internet well worth of all American households in 2007. Let me expand on among my monitorings.


My price quote based upon the capitalists' permit applications submitted 2 years after the very first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the kind of information that we could make use of on this.


So for every $100 of raised foreign financial investment that year, the EB program contributed one dime. Under a much a lot more shaky analytical base, the initial applications of would-be immigrant capitalists, USCIS is telling journalists that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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




Divine served as Principal Guidance of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Organization to Invest in United States, the national market association of local.


DECLARATION 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 a lot of, if all 10,000 ports this link 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 growing and obtaining toward that. Especially as USCIS, i was reading this the firm that oversees the program, has been making the policies more clear and the procedures much more reasonable and clear for the people who are arranging financial investments and for the capitalists that are spending, more people have agreed and able to put initiative and cash into the process to discover great projects and create them, and then a lot more capitalists have actually agreed to spend their money and take the risk and use the cash to develop the work that is the point of the program.

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These tasks do not wait around for life, and USCIS understands that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, actually, they are ready to refute applications that are not certifying. And they do so, as was stated


The regional center part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day view it now of expiration in September.


The procedure takes a great while to develop a project and after that to obtain the investors accepted. And they do not desire their cash moving with till they have been authorized. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of jobs.

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I would love to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that belongs to the code. It simply is a reality that most of the local facilities that are pooling investments have actually set those in places of high joblessness or in backwoods where half- million-dollar investments are allowed, which makes good sense.