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The program is placed in a really weird and non-helpful governmental place for the excitement of worldwide financial investment in the United States. We are giving away too much for too small of a financial investment.


The local facilities, with their half-million schemes, essentially undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to be regarding creating company entities, not passive investments. It needs to be regarding developing genuine jobs, not specify calculations regarding the indirect creation of tasks, which is now part of the regulation.


Maybe that is among the reasons it has actually stopped working every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of middlemen, both public and private. The program has greater than its share of detractions, which I will enter into later on if anybody is interested.


This is a firm that enjoys to state yes to applicants, but as the table in my testimony reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually actually discussed a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and for great reason

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Seventh, in this program visas go to individuals who can not obtain them any type of other means and to people whose scheduled investment is actually less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Let me broaden on among my observations.


My price quote based on the financiers' permit applications filed 2 years after the very first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not offer the sort of data that we can use on this.


So for every single $100 of increased foreign financial investment that year, the EB program added one dime. Under a a lot more unsteady analytical base, the first applications of potential immigrant financiers, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $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 method team.




Divine worked as Principal Advice of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Director. He has actually worked thoroughly with the EB-5 program secretive method. He was chosen, as I recognize, vice president of the Association to Buy USA, the national industry association of regional facilities.


STATEMENT OF ROBERT Related Site C. DIVINE, ATTORNEY, 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, Legislator Grassley, and others.


At most, if all 10,000 slots were utilized, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and getting toward that. Particularly as USCIS, the agency that oversees the program, has been making the policies clearer and the procedures more rational and clear for individuals who are arranging investments and for the financiers that are investing, more individuals have actually been ready and able to place initiative and cash into the procedure to find good projects and develop them, and afterwards more financiers have wanted to spend their my site cash and take the danger and use the cash to produce the tasks that is the factor of the program.

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These tasks do not linger permanently, and USCIS comprehends that and are check this attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, as a matter of fact, they are ready to reject applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has actually 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 of expiry in September.


The process takes a good while to develop a task and after that to obtain the financiers approved. And they do not desire their money streaming through until they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the advancement of projects.

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I wish to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 regulation that belongs to the code. It simply is a truth that the majority of the regional facilities that are merging financial investments have established those in locations of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, which makes good sense.