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


The local facilities, with their half-million systems, essentially damaged the more practical 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 about developing service entities, not passive financial investments. It needs to be regarding creating genuine jobs, not clarify computations about the indirect development of jobs, which is now component of the regulations.


Probably that is one of the reasons it has failed time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly enter into later if any person is interested.


This is an agency that enjoys to say yes to candidates, but as the table in my testament shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has actually really discussed much. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas go to individuals who could not obtain them otherwise and to individuals whose planned investment is really less, according to the Federal Book, than the typical mean web well worth of all American families in 2007. Allow me expand on one of my monitorings.


My estimate based upon the financiers' permit applications submitted 2 years after the first investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not give the sort of information that we could utilize on this.


So for every $100 of raised foreign investment that year, the EB program added one penny. Under a far more shaky analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the level of 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 you could look here the head of the company's migration method group.




Divine served as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Organization to Spend in U.S.A., the nationwide market organization of local.


Divine, we are pleased to have you right here. Please go in advance, sir. DECLARATION 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. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, 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 toward that. Especially as USCIS, the company that supervises the program, has been making the regulations clearer and the processes a lot more sensible and clear for the individuals check that are organizing investments and for the capitalists who are spending, even more individuals have agreed and able to put initiative and money into the procedure to find good jobs and develop them, and after that more investors have actually agreed to invest their cash and take the risk and utilize the cash to create the tasks that is the factor of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, as a matter of fact, they are ready to refute applications that are not certifying. And they do so, as was stated


The regional center component 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 extended five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiry in September.


The process takes a great while to function up a job and afterwards to get the investors authorized. And they do not want their cash moving through up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is already preventing the development of projects.

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I wish to clarify that the Regional Facility Program is not the same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 more law that is component of the code. It simply is a truth that the majority of the regional centers that are pooling financial investments have actually established those instead of high joblessness or in backwoods where half- million-dollar financial investments are enabled, and that makes good sense.