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The program is positioned in a very strange and non-helpful governmental area for the stimulation of international investment in the United States. Second, its scale is all wrong. We are distributing excessive for too little of a financial investment. Further, increasing endeavor resources half a million dollars a tranche is, to say the least, inefficient.


The local centers, with their half-million schemes, basically undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, should be concerning producing business entities, not easy investments. It needs to have to do with developing actual jobs, not elaborate estimations regarding the indirect creation of work, which is currently part of the regulation.


Maybe that is one of the reasons it has fallen short year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will enter later if any person is interested.


This is a firm that loves to state yes to applicants, however as the table in my testimony shows, USCIS officers have much more problem with EB-5 applications than others. I assume that is something that no one has actually spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and completely reason

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Seventh, in this program visas go to individuals that can not obtain them any type of various other means and to people whose planned investment is in fact much less, according to the Federal Book, than the typical mean web worth of all American households in 2007. Let me expand on among my monitorings.


My price quote based on the financiers' eco-friendly card applications filed 2 years after the very first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not supply the type of data that we could make use of on this.


So for every single $100 of raised international financial investment that year, the EB program contributed one penny. Under a a lot more wobbly statistical base, the preliminary applications of potential immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's immigration method team.




Divine worked as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has functioned thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice president of the Organization to Spend in U.S.A., the national sector association of local.


Divine, we are pleased to have you below. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were used, it would be 1 percent of the migration every year to the United States. It is not near that yet, yet it is expanding and getting towards that. Especially as USCIS, the agency that oversees the program, has been making the guidelines clearer and the processes a lot more sensible and clear for individuals that are organizing financial investments and for the investors who are spending, more individuals have been ready and able to put initiative and money right into the procedure to discover good jobs and create them, and afterwards a lot more capitalists have been prepared to spend their cash and take the threat and use the cash to develop the jobs that is the factor of the program.

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These jobs do not wait about for life, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was mentioned


The local center component of the program is not. It is part of an appropriations costs that was passed in 1992, and because then that program has actually been extended 5 times for 19 years. EB5 Regional Center Program It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to develop a project and afterwards to obtain the investors accepted. And they do not want their money moving with till they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of projects.

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I wish to make clear 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 feature of the normal EB-5 law that is part of the code. It just is a truth that a lot of the regional centers that are pooling financial investments have actually established those in places of high unemployment or in backwoods where half- million-dollar investments are enabled, which makes good sense.