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The program is put in a very weird and non-helpful bureaucratic area for the stimulation of international financial investment in the United States. We are giving away too much for as well little of an investment.


The regional centers, with their half-million schemes, basically undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should be concerning producing service entities, not passive investments. It must have to do with developing actual jobs, not clarify estimations concerning the indirect production of jobs, which is now part of the regulation.


Probably that is among the reasons why it has stopped working every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well full of middlemen, both public and private. The program has greater than its share of scandals, which I will certainly get right into later if anybody is interested.


This is a firm that enjoys to state yes to applicants, however as the table in my statement reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that no one has really discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently reason

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Seventh, in this program visas go to people that might not get them differently and to individuals whose organized financial investment is really much less, according to the Federal Get, than the typical mean total assets of all American family members in 2007. Let me expand on among my monitorings.


My estimate based on the investors' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not give the kind of data that we might use on this.


So for each $100 of boosted foreign financial investment that year, the EB program added one penny. Under a much more unsteady analytical base, the first applications of would-be immigrant investors, USCIS is informing journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the company's migration method team.




Divine functioned as Chief Advise of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has functioned thoroughly with the EB-5 program in private practice. He was elected, as I understand, vice president of the Organization to Invest in USA, the nationwide useful source market organization of local.


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


At many, if all 10,000 slots were used, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, however it is expanding and obtaining towards that. Especially as USCIS, the company that supervises the program, has actually been making the guidelines clearer and the processes more logical and clear for the individuals who are arranging investments and for the financiers who are investing, even more people have actually been willing and able to put effort and cash right into the process to find great tasks and establish them, and after that much more capitalists have been ready to spend their cash and take the threat and use the cash to develop the tasks that is the point of the program.

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These tasks do not linger forever, and USCIS comprehends that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, in fact, they are ready over at this website to reject applications that are not certifying. And they do so, as was discussed


The regional center part of the program is not. It is component of an appropriations costs that was enacted in 1992, and considering that then that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to work up a project and afterwards to get the financiers approved. And they do not want their cash moving with up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently discouraging the growth of jobs.

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I want to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 law that belongs to the code. It simply is a reality that most of the regional facilities that are merging financial investments have actually established those in areas other of high unemployment or in backwoods where half- million-dollar investments are enabled, and that makes good sense.