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The program is placed in a really odd and non-helpful bureaucratic area for the stimulation of worldwide investment in the United States. We are giving away also much for also little of an investment.


The local facilities, with their half-million plans, essentially undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to have to do with producing company entities, not passive investments. It must be about producing actual jobs, not clarify calculations regarding the indirect development of tasks, which is now part of the legislation.


Perhaps that is one of the reasons it has failed time after time to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too filled with middlemen, both public and private. 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 likes to claim yes to applicants, yet as the table in my statement reveals, USCIS policemans have far more trouble with EB-5 applications than others. I assume that is something that nobody has really discussed a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever reason

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Seventh, in this program visas go to individuals who could not obtain them differently and to people whose scheduled investment is actually much less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Let me expand on one of my monitorings.


My price quote 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 authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not supply the kind of information that we could make use of on this.


For every $100 of increased international financial investment that year, the EB program contributed one penny. Under a far more unsteady analytical base, the initial applications of potential immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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




Divine served as Principal Guidance of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has worked extensively with the EB-5 program secretive technique. He was chosen, as I comprehend, vice head of state of the Association to Purchase USA, the national sector association of local centers.


Divine, we are thrilled to have you right here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is expanding and getting towards that. Specifically as USCIS, the firm that supervises the program, has actually been making the policies more clear and the procedures extra sensible and clear for individuals that are arranging financial investments and more info for the financiers that are spending, even more people have actually agreed and able to place initiative and money right into the procedure to find great jobs and develop them, and after that extra financiers have agreed to spend their cash and take the threat and use the cash to create the tasks that is the factor of the program.

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These projects do not linger for life, and USCIS recognizes that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, as a matter of fact, they are prepared to reject applications that are not qualifying. And they do so, as was mentioned


The regional facility part of the program is not. It is part of an appropriations bill that was enacted in 1992, and ever since that program has actually been prolonged 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 expiration in September.


The procedure takes an excellent while to develop a task and after that to obtain the capitalists approved. And they do not want their cash moving through up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the development of tasks.

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I would love to make clear that the Regional Center Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 law that belongs to the code. It simply is a truth that the majority of the local facilities that are pooling financial investments have actually set those instead of high unemployment or in rural locations where fifty percent- million-dollar financial investments are enabled, and that makes sense.