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The program is positioned in a very odd and non-helpful governmental area for the stimulation of global investment in the United States. We are providing away too much for also tiny of a financial investment.


The local facilities, with their half-million plans, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should have to do with developing service entities, not passive investments. It should be about creating genuine jobs, not specify computations about the indirect creation of work, which is now component of the regulations.


Perhaps that is among the reasons it has failed time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too loaded with middlemen, both public and personal. The program has greater than its share of scandals, which I will enter into later on if anybody is interested.


This is a firm that loves to state yes to applicants, yet as the table in my statement shows, USCIS police officers have far more trouble with EB-5 applications than others. I think that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high rates of internal denials in this program and completely reason

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Seventh, in this program visas go to individuals that can not obtain them differently and to people whose planned investment is actually less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Allow me expand on one of my observations.


My quote based upon the investors' environment-friendly card applications submitted 2 years after the very first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not give the kind of information that we could use on this.


So for each $100 of boosted foreign investment that year, the EB program contributed one penny. Under a a lot more wobbly analytical base, the preliminary applications of potential immigrant investors, USCIS is telling journalists More about the author that the level of investment in the just-concluded year was regarding $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 group.




Divine acted as Chief Guidance of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program in exclusive technique. He was chosen, as I comprehend, vice president of the Organization to Purchase USA, the nationwide market organization of local facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, 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.


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the agency that supervises the program, has actually been making the regulations more clear and the procedures more reasonable and clear for the people who are organizing financial investments and for the capitalists who are spending, even more individuals have actually been eager and able to put initiative and money right into the process to locate excellent tasks and develop them, and after that extra investors have actually been willing to spend their cash and take the risk and make use of the cash to create the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, in fact, they prepare to refute applications that are not qualifying. And they do so, as was pointed out


The regional center component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and since then that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently article and not nearer to the date of expiry in September.


The process takes a good while to develop a project and afterwards to get the investors approved. And they do not desire their money streaming via until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the advancement of jobs.

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I want to make clear that the Regional Center 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 legislation that becomes part of the code. It simply is a reality that a lot of the local centers that are pooling investments have actually established those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, and best site that makes feeling.