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The program is positioned in a really strange and non-helpful administrative place for the excitement of international investment in the United States. We are offering away also much for too small of an investment.

The local centers, with their half-million plans, basically undercut the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to have to do with developing service entities, not easy investments. It needs to be regarding producing real jobs, not clarify estimations about the indirect production of work, which is currently part of the regulations.


Probably that is one of the reasons why it has actually fallen short time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too loaded with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will certainly enter into later on if anyone is interested.


This is a firm that enjoys to state yes to applicants, but as the table in my testimony shows, USCIS police officers have much more trouble with EB-5 applications than others. I believe that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely reason

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Seventh, in this program visas go to individuals who can not get them differently and to individuals whose planned investment is actually less, according to the Federal Get, than the average mean web well worth of all American households in 2007. Let me expand on one of my monitorings.


My estimate based upon the financiers' permit applications submitted 2 years after the very first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not supply the type of data that we might use on this.


So for every single $100 of boosted international financial investment that year, the EB program added one cent. Under a a lot more shaky statistical base, the first applications of would-be immigrant capitalists, USCIS is telling journalists that the degree of financial investment in the just-concluded year was about $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 firm's immigration method group.

Divine functioned as Chief Advice of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Acting Replacement Supervisor. He has worked extensively with the EB-5 program in private technique. He was elected, as I comprehend, vice president of the Organization to Spend in USA, the national market organization of local centers.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, 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 utilized, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, yet it is expanding and getting towards that. Particularly as USCIS, the company that looks after the program, click here has been making the policies clearer and the processes extra sensible and clear for the individuals that are organizing financial investments and for the financiers that are spending, even more people have agreed and able to place initiative and cash into the procedure to locate excellent tasks and establish them, and after that more investors have agreed to invest their cash and take the risk and utilize the money to develop the jobs that is the point of the program.

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These projects do not linger for life, and USCIS understands that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not imply 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 part of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The process takes a great while to develop a project and after that to obtain the investors authorized. And they do not want their money streaming via until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is already preventing the advancement of tasks.

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I would love to make clear that the Regional Center Program is not the same as the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 legislation that becomes part of the code. It just is a truth that most of the local facilities that are merging financial investments have set those in areas of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes feeling.