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The program is put in a really weird and non-helpful administrative place for the stimulation of global financial investment in the United States. We are providing away too much for also small of an investment.


The regional facilities, with their half-million plans, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, ought to have to do with producing service entities, not passive financial investments. It ought to be concerning developing actual jobs, not specify computations regarding the indirect production of jobs, which is currently component of the regulations.


Perhaps that is one of the reasons that it has fallen short every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too full of intermediaries, both public and private. The program has even more than its share of detractions, which I will enter into later if any person is interested.


This is a company that enjoys to claim yes to candidates, but as the table in my statement shows, USCIS police officers have a lot extra trouble with EB-5 applications than others. I believe that is something that nobody has actually chatted about a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and completely reason

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Seventh, in this program visas go to people that might not get them any type of other means and to individuals whose scheduled financial investment is in fact much less, according to the Federal Get, than the ordinary mean web worth of all American households in 2007. Let me expand on among my observations.


My price quote based upon the financiers' permit applications filed 2 years after the first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not provide the kind of information that we might make use of on this.


For every $100 of enhanced international investment that year, the EB program contributed one dime. Under a much extra shaky statistical base, the first applications of potential immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year was concerning $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 company's migration practice group.




Divine served as Principal Counsel of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has functioned extensively with the EB-5 program in personal method. He was elected, as I comprehend, vice president of the Organization to Spend in USA, the national sector association of local.


Divine, we are thrilled to have you here. Please go on, sir. DECLARATION 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. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were used, it would certainly EB5 Regional Center Program be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is growing and obtaining towards that. Particularly as USCIS, the firm that manages the program, has been making the guidelines more clear and the processes extra logical and clear for the individuals that are arranging financial investments and for the investors who are investing, even more people have wanted and able to place effort and money into the procedure to find good jobs and create them, and afterwards more financiers have actually wanted to invest their cash and take the danger and use the money to produce the jobs that is the factor of the program.

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These projects do not linger permanently, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, in truth, they are prepared to reject applications that are not qualifying. And they do so, as was discussed


The local facility component of the program is not. It is part of an appropriations expense that was established in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiry in September.


The process takes a great while to work up a task and then to get the investors approved. And they do not desire their cash flowing with up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of projects.

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I would such as to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 regulation that is component of the code. It just is a truth that the majority of the regional facilities that are merging financial investments have actually established those in locations of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes feeling.