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The program is positioned in an extremely strange and non-helpful bureaucratic area for the excitement of global investment in the United States. We are providing away as well much for as well small of a financial investment.


The regional centers, with their half-million schemes, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must be about creating organization entities, not easy investments. It ought to be regarding producing real tasks, not specify computations about the indirect creation of tasks, which is currently part of the regulations.


Perhaps that is among the reasons it has stopped working every year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with middlemen, both public and private. The program has greater than its share of scandals, which I will certainly get into later if anybody is interested.


This is an agency that enjoys to state yes to applicants, however as the table in my testimony shows, USCIS police officers have much a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently reason

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Seventh, in this program visas go to individuals that could not obtain them differently and to people whose planned financial investment is really less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Let me broaden on among my observations.


My estimate based upon the capitalists' copyright applications filed 2 years after the initial financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not provide the sort of data that we can use on this.


So for every $100 of increased international financial investment that year, the EB program contributed one penny. Under a far more shaky statistical base, the first applications of would-be immigrant capitalists, USCIS is informing reporters that the level of 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 company's migration practice team.




Divine offered as Chief Counsel of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and then Acting Deputy Director. He has worked thoroughly with the EB-5 program secretive practice. He was elected, as I understand, vice president of the Association to Invest in United States, the national industry organization of regional.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, 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 growing and getting towards that. Specifically as USCIS, the firm that supervises the program, has been making the regulations more clear and the procedures a lot more rational and clear for the individuals that are organizing investments and for the investors who are investing, more individuals have actually agreed and able to place effort and money into the procedure to discover excellent projects and create them, and afterwards more financiers have wanted to spend their money and take the threat and use the money to create the tasks that is the factor of the program.

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These jobs do not linger forever, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, actually, they are ready to deny applications that are here not qualifying. And they do so, as was mentioned


The local center component of the program is not. It is component of an appropriations costs that was passed in 1992, and considering that then that program has actually been prolonged 5 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 expiry in September.


The procedure takes a great while to develop a project and afterwards to get the financiers accepted. And they do not want their cash flowing via up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the growth of jobs.

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I would certainly such as to clarify that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 law that belongs to the code. It just is a fact that a lot of the regional centers that are merging investments have established those in areas of high joblessness or in rural areas where half- million-dollar investments are allowed, which makes good sense.