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The program is put in a really strange and non-helpful bureaucratic area for the excitement of worldwide financial investment in the United States. We are providing away as well much for too small of an investment.

The local centers, with their half-million schemes, basically undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be concerning creating company entities, not easy financial investments. It ought to have to do with developing real tasks, not clarify calculations regarding the indirect development of jobs, which is now part of the regulations.


Perhaps that is just one of the reasons it has fallen short time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also filled with middlemen, both public and private. The program has greater than its share of scandals, which I will certainly enter into later on if anybody is interested.


This is a firm that likes to state yes to candidates, but as the table in my testimony reveals, USCIS officers have a lot extra difficulty with EB-5 applications than others. I assume that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely factor

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Seventh, in this program visas most likely to people that might not obtain them any various other way and to individuals whose planned financial investment is really much less, according to the Federal Get, than the ordinary mean web worth of all American households in 2007. Allow me expand on one of my observations.


My estimate based on the investors' environment-friendly card applications filed 2 years after the very first investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not offer the sort of information that we can utilize on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one cent. Under a a lot more shaky analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's immigration method team.

Divine worked as Chief Advice of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and then Acting Replacement Director. He has functioned thoroughly with the EB-5 program in private practice. He was elected, as I understand, vice head of state of the Association to Spend in United States, the nationwide market association of local facilities.


Divine, we are pleased to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is expanding and getting towards that. Especially as USCIS, the agency that supervises the program, has actually been making the rules clearer and the processes a lot more sensible and clear for the people that are arranging investments and for the financiers who are spending, even more individuals have been ready and able to put initiative and cash right into the process to discover excellent projects and establish them, and after that extra financiers have actually agreed to spend their money and take the threat and utilize the cash to create the work that is the factor of the program.

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These projects do not wait about permanently, and USCIS comprehends that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, in truth, they prepare to refute applications that are not certifying. And they do so, as was pointed out

The local center component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes an excellent while to function up a project and after that to check here get the financiers approved. And they do not want their money moving through up until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of jobs.

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I would such as to clarify that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 regulation that belongs to the code. It simply is a reality that a lot of the regional centers that are pooling financial investments have actually established those in areas of high joblessness or in rural areas where fifty percent- million-dollar financial investments are permitted, which makes sense.