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The program is put in a really strange and non-helpful governmental location for the stimulation of worldwide investment in the United States. We are providing away as well much for as well little of a financial investment.


The local centers, with their half-million plans, essentially undercut the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to have to do with producing organization entities, not easy investments. It needs to be concerning producing genuine jobs, not clarify estimations about the indirect development of tasks, which is currently part of the regulation.


Maybe that is one of the reasons why it has actually fallen short every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well full of intermediaries, both public and personal. The program has greater than its share of detractions, which I will enter into later on if any person is interested.


This is an agency that enjoys to claim yes to candidates, however as the table in my testimony shows, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that no one has really spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever reason

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Seventh, in this program visas go to individuals that could not get them otherwise and to people whose planned investment is in fact less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Allow me increase on one of my monitorings.


My estimate based upon the capitalists' copyright applications submitted 2 years after the very first financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not offer the type of information that we could utilize on this.


For every $100 of raised foreign financial investment that year, the EB program contributed one penny. Under a a lot more shaky statistical base, the preliminary applications of would-be immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's immigration method group.




Divine worked as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Deputy Director. He has functioned thoroughly with the EB-5 program in private method. He was chosen, as I recognize, vice head of state of the Association to Spend in USA, the nationwide market organization of local.


Divine, we are delighted to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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. Thank you for having me.


At a lot of, if all 10,000 slots were used, it would be 1 percent of the immigration website each year to the USA. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the company that supervises the program, has been making the rules clearer and the processes extra rational and clear for individuals that are organizing financial investments and for the financiers who are investing, even more people have actually wanted and able to place initiative and cash into the procedure to discover great projects and develop them, and afterwards a lot more investors have actually wanted to spend their money and take the danger and make use of the cash to produce the tasks that is the factor of the program.

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These tasks do not wait around for life, and USCIS understands 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, in fact, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The local center component of the program is not. It is component of an appropriations costs that was established in 1992, and ever since that program has actually been expanded 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 day of expiry in September.


The process takes a good while to develop a task and after that to obtain the investors approved. And they do not desire their cash streaming through till they have actually been approved. And the specter of the expiry of this Regional Center Program in September is currently preventing the development of jobs.

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I would like 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 function of the routine EB-5 law that belongs to the code. It just is a fact that a lot of the local centers that are merging investments have actually set those in locations of high unemployment or in country areas where half- million-dollar financial investments are allowed, which makes good sense.