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The program is placed in an extremely odd and non-helpful administrative place for the excitement of worldwide financial investment in the United States. We are offering away as well much for also tiny of an investment.


The regional centers, with their half-million plans, essentially undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should have to do with developing company entities, not passive investments. It ought to have to do with developing genuine tasks, not specify computations concerning the indirect production of work, which is currently component of the regulations.


Possibly that is one of the reasons it has actually stopped working time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also filled up with middlemen, both public and personal. The program has more than its share of rumors, which I will certainly enter later on if anyone is interested.


This is an agency that enjoys to state yes to applicants, but as the table in my statement reveals, USCIS policemans have much more difficulty with EB-5 applications than others. I believe that is something that nobody has actually discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for excellent reason

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Seventh, in this program visas go to individuals that could not get them differently and to individuals whose organized investment is actually less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Let me increase on one of my observations.


My estimate based upon the capitalists' eco-friendly card applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not provide the sort of information that we can use on this.


So for every single $100 of raised international financial investment that year, the EB program contributed one cent. Under a far more shaky statistical base, the preliminary applications of potential immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $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 immigration technique team.




Divine functioned as Chief Advice of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and then Acting Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in private practice. He was elected, as I comprehend, vice president of the Organization to Invest in United States, the national sector association of regional.


Divine, we are delighted to have you right here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the firm that oversees the program, has actually been making the regulations more clear and the procedures extra sensible and clear for individuals that are arranging financial investments and for the financiers that are spending, more individuals have been eager and able to place initiative and money into the process to locate excellent projects and create them, and then extra investors have actually agreed to invest their cash and take the risk and utilize the money to create the work that is the factor of the program.

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These jobs do not wait around forever, and USCIS recognizes that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The regional facility component of the program is not. It is part of an appropriations bill that was passed in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiry in September.


The here process takes a good while to function up a task and then to get the financiers approved. And they do not want their cash moving with until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development 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 concept of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. It simply is a fact that a lot of the local facilities that are pooling financial investments have established those in places of high joblessness or in rural locations where half- million-dollar financial investments are enabled, and that makes sense.