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


The local centers, with their half-million schemes, basically damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must be about producing organization entities, not easy investments. It should be regarding creating genuine work, not elaborate estimations regarding the indirect development of jobs, which is now component of the legislation.


Probably that is among the reasons that it has actually stopped working every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well filled up with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter later on if anyone is interested.


This is a firm that loves to state yes to applicants, however as the table in my testimony reveals, USCIS officers have much a lot more trouble with EB-5 applications than others. I assume that is something that nobody has actually really spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently reason

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Seventh, in this program visas go to individuals who could not obtain them otherwise and to individuals whose planned investment is really less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Let me expand on one of my observations.


My price quote based upon the investors' copyright applications filed 2 years after the first investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not give the kind of data that we could make use of on this.


So for every single $100 of boosted foreign investment that year, the EB program added one dime. Under a a lot more shaky statistical base, the preliminary applications of prospective immigrant investors, USCIS is telling journalists that the level 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 paying attention to me. Chairman Leahy. He is the head of the firm's migration practice team.




Divine offered as Principal Advise of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program in personal method. He was chosen, as I understand, vice head of state of the Association to Buy USA, the national market association of regional centers.


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


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is expanding and getting toward that. Especially as USCIS, the company that manages the program, has been making the policies clearer and the procedures a lot more sensible and clear for the people who are organizing financial investments and for the investors that are spending, even more people have wanted and able to put effort and cash right into the procedure to locate excellent tasks and create them, and afterwards a lot more financiers have been prepared to invest their money and take the threat and utilize the cash to create the tasks that is the factor of the program.

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These projects do not linger forever, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, actually, they are all set 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 belongs to an appropriations bill that was passed in 1992, and considering that then that program has actually 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 date of expiry in September.


The process takes a great while to work up a job and then to obtain the click here financiers authorized. And they do not want their cash flowing with till they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the growth of projects.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 regulation that is component of the code. It just is a reality that a lot of the local centers that are merging investments have actually set those in locations of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, which makes sense.