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The program is put in an extremely strange and non-helpful governmental area for the stimulation of worldwide investment in the United States. We are providing away as well much for too tiny of a financial investment.


The local centers, with their half-million schemes, basically 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, need to have to do with creating organization entities, not easy financial investments. It ought to have to do with creating genuine jobs, not specify calculations about the indirect production of jobs, which is currently component of the legislation.


Probably that is just one of the reasons it has actually failed time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of middlemen, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter into later on if any person is interested.


This is a firm that enjoys to state yes to candidates, however as the table in my testimony shows, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that nobody has actually truly chatted about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently factor

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Seventh, in this program visas go to individuals who can not get them otherwise and to individuals whose organized investment is really much less, according to the Federal Get, than the average mean web well worth of all American households in 2007. Let me broaden on one of my observations.


My estimate based upon the investors' eco-friendly card applications filed 2 years after the very first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not give the type of data that we could use on this.


So for every $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a much extra wobbly analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $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 firm's immigration method team.




Divine acted as Principal Counsel of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Deputy Director. He has actually worked extensively with the EB-5 program in personal method. He was chosen, as I understand, vice head of state of the Organization to Spend in United States, the nationwide market organization of regional centers.


Divine, we are delighted to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the migration every year to the United States. It is not near that yet, yet it is expanding and getting toward that. Especially as USCIS, the firm that looks after the program, has been making the guidelines more clear and the procedures more rational and clear for individuals that are arranging financial investments and for the financiers that are investing, more people have actually wanted and able to place initiative and money right into the process to find excellent tasks and establish them, and afterwards much more capitalists have actually wanted to invest their money and take the danger and make use of the cash to produce the work that is the point of the program.

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These tasks do not wait about here permanently, and USCIS recognizes that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, actually, they are all set to refute applications that are not certifying. And they do so, as was discussed


The local facility part of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has been prolonged 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 expiration in September.


The procedure takes a great while to develop a job and after that to get the capitalists approved. And they do not want their cash flowing with till they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already preventing the development of tasks.

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I wish to clear up that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It just is a reality that many of the local facilities that are merging investments have established those instead of high joblessness or in rural locations where half- million-dollar investments are enabled, and that makes good sense.