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The program is put in a really strange and non-helpful administrative place for the stimulation of international investment in the United States. We are giving away too much for too tiny of an investment.


The local centers, with their half-million plans, essentially damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, should have to do with developing business entities, not easy investments. It should have to do with creating real work, not clarify computations concerning the indirect development of tasks, which is currently part of the regulations.


Perhaps that is among the reasons that it has stopped working year after year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well filled up with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter into later on if anybody is interested.


This is a company that likes to claim yes to applicants, yet as the table in my testament reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high rates of interior denials in this program and completely reason

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Seventh, in this program visas most likely to people that could not get them otherwise and to people whose planned investment is actually less, according to the Federal Book, than the average mean net well worth of all American households in 2007. Allow me broaden on one of my observations.


My estimate based upon the financiers' copyright applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not provide the kind of information that we could make use of on this.


So for every $100 of raised foreign investment that year, the EB program contributed one dime. Under a a lot more shaky analytical base, the initial applications of potential immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year was regarding $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 team.




Divine acted as Chief Counsel of the USA Citizenship and Migration Solutions from July find here 2004 till November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has worked extensively with the EB-5 program in private practice. He was chosen, as I recognize, vice head of state of the Association to Purchase USA, the nationwide sector association of local facilities.


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


At the majority of, if all 10,000 ports were made use of, it would be 1 percent of the immigration each year to the United States. It is not near that yet, but it is growing and getting towards that. Especially as this USCIS, the company that supervises the program, has actually been making the policies clearer and the processes a lot more reasonable and clear for the individuals that are arranging financial investments and for the investors that are investing, more individuals have actually agreed and able to place initiative and money right into the process to discover great tasks and develop them, and then extra capitalists have been eager to invest their cash and take the danger and use the cash to develop the tasks that is the factor of the program.

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These jobs do not linger forever, and USCIS recognizes 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 examination, and, in reality, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The regional center part of the program is not. It belongs to an appropriations costs that was enacted in 1992, and given that then that program has been expanded five times for 19 years. It is time for it see here to be permanent, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes a great while to function up a task and after that to get the investors approved. And they do not desire their money flowing via till they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already preventing the growth of jobs.

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I want to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It just is a truth that many of the local centers that are merging investments have set those in locations of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes sense.