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The program is positioned in a very strange and non-helpful bureaucratic area for the stimulation of international investment in the United States. We are offering away also much for as well small of a financial investment.


The regional centers, with their half-million systems, essentially damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must have to do with creating business entities, not easy financial investments. It must have to do with developing actual jobs, not clarify estimations concerning the indirect development of work, which is now component of the regulations.


Probably that is among the reasons why it has actually stopped working year after year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also full of intermediaries, both public and exclusive. The program has even more than its share of rumors, which I will enter later if anybody is interested.


This is an agency that likes to state yes to applicants, yet as the table in my testimony shows, USCIS officers have a lot more problem with EB-5 applications than others. I think that is something that nobody has really discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and permanently reason

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Seventh, in this program visas most likely to people who might not get them any various other method and to individuals whose organized financial investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Let me broaden on one of my monitorings.


My price quote based upon the capitalists' permit applications filed 2 years after the initial financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not offer the sort of information that we could make use of on this.


So for each $100 of enhanced foreign investment that year, the EB program added one penny. Under a far more shaky analytical base, the initial applications of prospective immigrant investors, USCIS is informing journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's immigration practice group.




Divine acted as Principal Counsel of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in personal method. He was chosen, as I understand, vice president of the Organization to Spend in U.S.A., the national sector organization of local.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and obtaining toward that. Specifically as USCIS, the company that looks after the program, has actually been making the guidelines more clear and the processes extra logical and clear for the individuals who are organizing investments and for the capitalists who are investing, more people have actually been ready and able to put initiative and money right into the procedure to locate good projects and establish them, and after that a lot more investors have actually agreed to spend their cash and take the risk and use the cash to create the tasks that is read more the factor of the program.

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These jobs do not linger permanently, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was discussed


The regional center component of the program is not. It is part of an appropriations bill that was enacted in 1992, and since then that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes a great while to work up a task and afterwards to obtain the capitalists accepted. And they do not want their money flowing via until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the advancement of tasks.

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I want to make clear that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 legislation that belongs to the code. It just is a truth that most of the regional centers that are pooling financial investments have actually established those in locations of high joblessness or in country areas where half- million-dollar financial investments are permitted, and that makes good sense.