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The program is positioned in a really strange and non-helpful administrative area for the stimulation of worldwide financial investment in the United States. We are giving away as well much for too little of an investment.

The regional centers, with their half-million systems, essentially undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to be regarding creating service entities, not easy investments. It needs to have to do with developing actual tasks, not elaborate estimations concerning the indirect production of work, which is now part of the legislation.


Maybe that is one of the factors why it has fallen short year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with intermediaries, both public and exclusive. The program has more than its share of detractions, which I will certainly obtain into later on if any person is interested.


This is an agency that loves to say yes to candidates, however as the table in my testimony reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I assume that is something that no one has truly discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas go to people who might not obtain them differently and to individuals whose organized investment is in fact much less, according to the Federal Book, than the average mean net worth of all American family members in 2007. Allow me expand on one of my observations.


My estimate based upon the financiers' permit applications filed 2 years after the initial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not give the kind of information that we can utilize on this.


So for each $100 of increased international investment that year, the EB program contributed one cent. Under a far more shaky statistical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling journalists that the degree 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 firm's migration method group.

Divine offered as Principal Guidance of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and then Acting Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I comprehend, vice head of state of the Association to Spend in United States, the nationwide sector organization of regional.


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


At a lot of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, yet it is growing and obtaining towards that. Particularly as USCIS, click here the agency that supervises the program, has actually been making the policies clearer and the procedures much more logical and clear for individuals who are organizing financial investments and for the financiers that are spending, even more individuals have actually wanted and able to put initiative and money right into the process to locate great tasks and establish them, and afterwards extra capitalists have been ready to spend their money and take the danger and make use of the cash to develop the jobs that is the point of the program.

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These projects do not linger forever, and USCIS recognizes that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, in truth, they are prepared to reject applications that are not certifying. And they do so, as was pointed out

The regional facility part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and given that then that program has actually been prolonged five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes a good while to work up a job and after that to get the financiers authorized. And they do not desire their cash moving with until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the advancement of tasks.

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I want to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 legislation that is part of the code. It just is a reality that the majority of the regional centers that are merging financial investments have set those in locations of high unemployment or in backwoods where half- million-dollar investments are enabled, which makes sense.