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The program is put in a really strange and non-helpful administrative location for the stimulation of international financial investment in the United States. We are providing away also much for too little of a financial investment.


The local centers, with their half-million systems, essentially undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, ought to have to do with creating organization entities, not passive financial investments. It needs to have to do with developing genuine work, not clarify calculations concerning the indirect development of tasks, which is currently part of the regulations.


Possibly that is one of the reasons it has stopped working year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too full of middlemen, both public and personal. The program has even more than its share of detractions, which I will enter into later on if anyone is interested.


This is an agency that likes to say yes to candidates, yet as the table in my testimony reveals, USCIS officers have far more problem with EB-5 applications than others. I believe that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and for great factor

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Seventh, in this program visas most likely to individuals that can not get them any kind of various other method and to people whose organized investment is really much less, according to the Federal Book, than the ordinary mean internet worth of all American families in 2007. Let me increase on one of my observations.


My price quote based on the capitalists' eco-friendly card applications submitted 2 years after the very first investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not give the kind of information that we could use on this.


So for every $100 of increased international financial investment that year, the EB program added one dime. Under a a lot more shaky statistical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's immigration method group.




Divine acted as Chief Counsel of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Supervisor. He has functioned extensively with the EB-5 program secretive method. He was chosen, as I recognize, vice head of state of the Organization to Invest in United States, the nationwide sector association of regional.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, more info and others.


At many, if all 10,000 ports were used, it would be 1 percent of the migration every year to the USA. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the company that oversees the program, has been making the regulations clearer and the processes extra logical and clear for individuals who are organizing financial investments and for the capitalists who are spending, even more individuals have been prepared and able to put effort and money into the procedure to find excellent projects and develop them, and then more capitalists have been prepared to spend their cash and take the risk and use the cash to produce the work that is the point of the program.

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


The local center part of the program is not. It belongs to an appropriations expense that was enacted in 1992, and ever since 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 currently and not nearer to the date of expiration in September.


The process takes an excellent while to develop a project and after that to obtain the capitalists approved. And they do not desire their money flowing through until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already preventing the growth of jobs.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 law that belongs to the code. It just is a truth that many of the local centers that are pooling financial investments have established those in areas of high joblessness or in country locations where fifty percent- million-dollar financial investments are enabled, and that makes good sense.