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The program is placed in a very strange and non-helpful administrative place for the excitement of global financial investment in the United States. We are offering away too much for too little of a financial investment.

The regional centers, with their half-million plans, essentially damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must have to do with creating organization entities, not easy investments. It should be concerning creating genuine work, not specify estimations regarding the indirect production of work, which is currently component of the regulations.


Perhaps that is among the reasons that it has failed time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well full of intermediaries, both public and private. The program has greater than its share of scandals, which I will get involved in later on if any person is interested.


This is an agency that enjoys to say yes to applicants, yet as the table in my testimony reveals, USCIS officers have much more difficulty with EB-5 applications than others. I think that is something that no one has really discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely factor

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Seventh, in this program visas most likely to people that could not obtain them differently and to people whose organized financial investment is actually less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Allow me expand on among my monitorings.


My estimate based upon the capitalists' 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 concerning $191 million confirmed-- that is my price quote. USCIS does not provide the kind of information that we could make use of on this.


So for each $100 of raised international financial investment that year, the EB program added one dime. Under a far more shaky statistical base, the preliminary applications of potential immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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

Divine worked as Chief Advise of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and then Acting Replacement Director. He has functioned thoroughly with the EB-5 program in personal method. He was chosen, as I recognize, vice president of the Association to Purchase United States, the nationwide sector organization of regional centers.


STATEMENT OF ROBERT C. DIVINE, LAWYER, 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.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the migration annually 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 regulations clearer and the procedures more read more reasonable and clear for individuals who are arranging investments and for the financiers that are investing, more individuals have wanted and able to place effort and money right into the procedure to find great tasks and develop them, and after that a lot more investors have been ready to spend their cash and take the threat and use the cash to produce the work that is the factor of the program.

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These jobs do not wait about permanently, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, actually, they prepare to refute applications that are not certifying. And they do so, as was mentioned

The regional facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and since then that program has been extended five 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 great while to develop a project and after that to get the investors accepted. And they do not want their cash flowing with until they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of jobs.

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I want to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that belongs to the code. It just is a truth that a lot of the local centers that are pooling financial investments have established those in places of high unemployment or in country areas where fifty percent- million-dollar financial investments are permitted, and that makes feeling.