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The program is placed in a really weird and non-helpful administrative location for the excitement of global investment in the United States. We are providing away also much for too little of a financial investment.


The regional centers, with their half-million schemes, essentially undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should have to do with creating service entities, not easy investments. It needs to have to do with producing genuine work, not specify calculations regarding the indirect production of tasks, which is currently component of the regulations.


Probably that is among the reasons it has actually fallen short time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well full of intermediaries, both public and exclusive. The program has more than its share of detractions, which I will get into later if anybody is interested.


This is an agency that likes to say yes to applicants, yet as the table in my testimony reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has actually actually spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and for excellent factor

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Seventh, in this program visas most likely to individuals that might not obtain them otherwise and to individuals whose planned financial investment is actually much less, according to the Federal Get, than the average mean total assets of all American families in 2007. Let me expand on one of my observations.


My price quote based upon the investors' permit applications submitted 2 years after the very first investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not provide the kind of data that we could utilize on this.


So for each $100 of increased foreign investment that year, the EB program contributed one cent. Under a far more wobbly analytical base, the first applications of prospective immigrant capitalists, view USCIS is telling journalists that the degree of financial investment in the just-concluded year was concerning $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 migration practice group.




Divine worked as Chief Advise of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has worked thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Organization to Purchase United States, the nationwide sector association of local centers.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, but it is expanding and obtaining towards that. Particularly as USCIS, the agency that supervises the program, has been making the policies more clear and the processes more reasonable and clear for individuals that are organizing financial investments and for the investors that are investing, even more individuals have actually agreed and able to place effort and money into the procedure to discover good jobs and develop them, and after that much more investors have actually wanted to spend their money and take the risk and use the cash to create the tasks that is the factor of the program.

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These jobs do not linger for life, and USCIS understands that and are trying my site to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The regional facility part of the program is not. It is component of an appropriations bill that was established in 1992, and since then that program has been expanded five 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 day of expiration in September.


The process takes a great while to function up a job and after that to get the capitalists approved. And they do not desire their money flowing with until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the development of jobs.

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I would love to clarify that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 regulation that becomes part of the code. It just is a truth that many of the local centers that are merging investments have actually established those Home Page in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.