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The program is positioned in a really odd and non-helpful administrative area for the stimulation of global investment in the United States. Second, its range is all wrong. We are providing away excessive for as well little of a financial investment. Additionally, raising endeavor resources half a million dollars a tranche is, to claim the least, inefficient.


The regional centers, with their half-million plans, basically damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should be about developing organization entities, not easy financial investments. It ought to be regarding developing actual jobs, not elaborate estimations about the indirect creation of jobs, which is now part of the regulations.


Probably that is one of the reasons why it has fallen short time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also filled with middlemen, both public and private. The program has greater than its share of detractions, which I will certainly enter later if anyone is interested.


This is a firm that loves to state yes to applicants, yet as the table in my statement reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I think that is something that no one has truly chatted around a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently reason

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Seventh, in this program visas most likely to people that could not obtain them differently and to people whose planned investment is really less, according to the Federal Book, than the average mean internet worth of all American family members in 2007. Allow me increase on among my observations.


My quote based upon the financiers' copyright applications filed 2 years after the very first financial investment-- these are the strong ones that remain 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 can utilize on this.


For every $100 of increased international financial investment that year, the EB program contributed one dime. Under a far more shaky statistical base, the first applications of prospective immigrant investors, USCIS is telling journalists that the level of financial investment in the just-concluded year was about $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 firm's immigration method team.




Divine worked as Principal Counsel of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program in exclusive technique. He was elected, as I comprehend, vice president of the Association to Invest in USA, the national industry association of regional.


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


At most, if all 10,000 slots were utilized, it would be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the firm that supervises the program, has been making the rules clearer and the processes extra sensible and clear for the individuals that are organizing investments and for the investors who are investing, more people have actually agreed and able to put effort and money right into the procedure to find excellent projects and establish them, and after that much more investors have actually agreed to spend their cash and take the threat and use the read more cash to produce 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 up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was stated


The regional center part of the program is not. It is component of an appropriations bill that was passed in 1992, and considering that then that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes a good while to develop a job and after that to get the investors authorized. And they do not want their cash flowing with till they have been accepted. And the specter of the expiry of this Regional Center Program in September is currently dissuading the growth of tasks.

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I would love to clarify 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 routine EB-5 regulation that is part of the code. It just is a truth that the majority of the regional facilities that are pooling investments have established those instead of high joblessness or in rural areas where fifty percent- million-dollar investments are permitted, which makes good sense.