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


The regional facilities, with their half-million plans, essentially damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, should have to do with producing business entities, not passive financial investments. It needs to be about creating actual tasks, not elaborate calculations regarding the indirect creation of tasks, which is currently component of the legislation.


Maybe that is one of the reasons why it has actually stopped working year after year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of middlemen, both public and private. The program has even more than its share of detractions, which I will certainly enter later if any person is interested.


This is an agency that enjoys to claim yes to candidates, yet as the table in my statement shows, USCIS officers have a lot more problem with EB-5 applications than others. I assume that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and forever reason

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Seventh, in this program visas go to people that might not get them differently and to people whose organized financial investment is actually less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Let me expand on one of my observations.


My quote based on the investors' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not supply the sort of information that we could utilize on this.


So for every single $100 of increased foreign investment that year, the EB program contributed one dime. Under a far more shaky analytical base, the preliminary applications of potential immigrant capitalists, USCIS is telling reporters that the degree of financial investment in the just-concluded year was regarding $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 served as Principal Counsel of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and then Acting Deputy Supervisor. He has functioned extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice president of the Association to Spend in United States, the national market association of local centers.


Divine, we are pleased to have you right 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, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were made use of, it would be 1 percent of the immigration each year to the United States. It is not near that yet, but it is growing and obtaining toward that. Particularly more info as USCIS, the firm that oversees the program, has actually been making the policies more clear and the procedures more sensible and clear for individuals that are arranging investments and for the financiers that are spending, even more individuals have actually agreed and able to put effort and cash into the procedure to find good jobs and establish them, and after that more investors have actually been willing to invest their cash and take the risk and use the cash to develop the work that is the factor of the program.

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These jobs do not wait around permanently, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in truth, they are ready to refute applications that are not certifying. And they do so, as was discussed


The regional center component of the program is not. It is component of an appropriations bill that was enacted in 1992, and given that then that program has actually been expanded 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 day of expiration in September.


The procedure takes a good while to work up a task and afterwards to obtain the investors authorized. And they do not desire their money flowing via till they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently preventing the advancement of projects.

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I would love to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 legislation that belongs to the code. It just is a reality that many of the regional facilities that are pooling financial investments have established those in areas of high joblessness or in country locations where half- million-dollar financial investments are allowed, which makes good sense.