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The program is positioned in a really strange and non-helpful bureaucratic location for the stimulation of worldwide investment in the United States. We are giving away as well much for as well tiny of an investment.


The local centers, with their half-million plans, essentially undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should be regarding developing organization entities, not passive investments. It ought to be about developing actual tasks, not specify computations concerning the indirect creation of work, which is currently part of the regulations.


Maybe that is one of the reasons that it has actually stopped working time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will certainly enter into later if anyone is interested.


This is a firm that enjoys to state yes to candidates, yet as the table in my testimony reveals, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually truly spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently factor

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Seventh, in this program visas most likely to people who can not obtain them otherwise and to people whose planned investment is really less, according to the Federal Reserve, than the ordinary mean net worth of all American households in 2007. Allow me expand on among my observations.


My price quote based upon the investors' copyright applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not offer the sort of information that we could make use of on this.


So for each $100 of boosted international investment that year, the EB program contributed one cent. Under a a lot more shaky analytical base, the first applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of investment look at more info in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's migration technique team.




Divine worked as Chief Counsel of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has actually worked extensively with the EB-5 program secretive method. He was chosen, as I understand, vice president like this of the Association to Invest in U.S.A., the nationwide sector association of regional.


Divine, we are thrilled to have you here. Please go ahead, sir. STATEMENT OF ROBERT 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, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and obtaining towards that. Especially as USCIS, the agency that looks after the program, has actually been making the regulations clearer and the processes more reasonable and clear for individuals who are arranging financial investments and for the financiers click site that are spending, more people have wanted and able to put effort and money into the procedure to find excellent tasks and create them, and then more investors have agreed to spend their cash and take the risk and utilize the cash to produce the tasks that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The local facility part of the program is not. It belongs to an appropriations costs that was enacted in 1992, and ever since that program has been extended 5 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 procedure takes a great while to develop a project and after that to obtain the financiers approved. And they do not want their money moving with up until they have been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the growth of jobs.

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I wish to clarify 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 feature of the routine EB-5 law that is component of the code. It just is a truth that the majority of the local centers that are merging investments have actually established those instead of high unemployment or in rural areas where half- million-dollar financial investments are permitted, which makes good sense.