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The program is positioned in a very weird and non-helpful bureaucratic area for the stimulation of international financial investment in the United States. Second, its scale is all incorrect. We are distributing way too much for also small of an investment. Better, raising financial backing half a million bucks a tranche is, to state the least, ineffective.


The local centers, with their half-million systems, basically undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with producing company entities, not easy investments. It needs to have to do with developing genuine tasks, not clarify computations about the indirect development of work, which is currently component of the legislation.


Possibly that is one of the reasons that it has fallen short 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 loaded with middlemen, both public and personal. The program has greater than its share of scandals, which I will certainly get involved in later if anyone is interested.


This is a company that likes to say yes to candidates, but as the table in my testimony reveals, USCIS policemans have far more trouble with EB-5 applications than others. I assume that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely factor

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Seventh, in this program visas go to people who can not get them otherwise and to individuals whose planned investment is actually less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Allow me expand on among my monitorings.


My estimate based upon the financiers' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not give the type of data that we might utilize on this.


So for every single $100 of raised international investment that year, the EB program contributed one cent. Under a a lot more unsteady statistical base, the first applications of prospective 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 listening to me. Chairman Leahy. He is the head of the firm's migration method group.




Divine functioned as Principal Counsel of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Deputy Director. He has functioned thoroughly with the EB-5 program secretive technique. He was elected, as I understand, vice president of the Organization to Spend in U.S.A., the nationwide sector organization of regional.


Divine, we are happy to have you right here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were made use of, it would be 1 percent of the immigration every year to the USA. It is not near that yet, however it is expanding and getting towards that. Specifically as USCIS, the agency that supervises the program, has been making the guidelines clearer and the procedures more rational and clear for individuals who are arranging investments and for the investors that are investing, more people have actually wanted and able to place effort and cash into the procedure to locate excellent tasks and develop them, and then a lot more financiers have wanted to invest their cash and take the risk and utilize the cash to develop the work that is the point of the program.

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These projects do not linger forever, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, in fact, they are ready to refute applications that are not qualifying. And they do so, as was discussed


The regional facility part of the program is not. It belongs to an website appropriations expense that was passed in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to work up a job and after that to obtain the financiers authorized. And they do not desire their money streaming through up until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already discouraging the growth of projects.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 regulation that becomes part of the code. It simply is a fact that many of the regional centers that are pooling investments have actually set those in locations of high unemployment or in country locations where fifty percent- million-dollar investments are allowed, and that makes good sense.