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The program is placed in an extremely strange and non-helpful governmental location for the stimulation of worldwide investment in the United States. We are giving away also much for too small of an investment.


The local centers, with their half-million schemes, essentially undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should have to do with producing company entities, not passive financial investments. It should have to do with developing actual jobs, not specify computations about the indirect development of work, which is now component of the legislation.


Probably that is among the reasons why it has fallen short year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too loaded with intermediaries, both public and private. The program has even more than its share of rumors, which I will enter later if any person is interested.


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

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Seventh, in this program visas go to people that can not get them differently and to individuals whose scheduled investment is really less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Allow me increase on one of my monitorings.


My quote based on the financiers' permit applications filed 2 years after the first financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not offer the kind of information that we might make use of on this.


For every $100 of enhanced international investment that year, the EB program added one dime. Under a much a lot more wobbly statistical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Let 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 acted as Chief Guidance of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program secretive technique. He was chosen, as I comprehend, vice president of the Organization to Purchase United States, the national sector organization of local facilities.


Divine, we are delighted to have you below. Please go ahead, sir. DECLARATION 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. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the agency that looks after the program, has been making the policies more clear and the processes more logical and clear for the individuals who are arranging financial investments EB5 Regional Center Program and for the financiers who are spending, more people have actually wanted and able to put initiative and cash into the procedure to discover good jobs and create them, and afterwards extra capitalists have actually been prepared to spend their cash and take the threat and use the cash to produce the tasks that is the factor of the program.

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These projects do not wait about forever, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, as a matter of fact, they are ready to refute applications that are not qualifying. And they do so, as was mentioned


The regional facility component of the program is not. It is part of an appropriations expense that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiry in September.


The procedure takes a good while to develop a job and afterwards to get the capitalists accepted. And they do not desire their cash flowing via until they have been accepted. And the specter of the expiry of this Regional Center Program in September is currently dissuading the development of projects.

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I want to clear up that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 legislation that is part of the code. It simply is a reality that the majority of the local facilities that are pooling financial investments have set those instead of high unemployment or in country areas where half- million-dollar investments are enabled, which makes sense.