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The program is put in an extremely strange and non-helpful governmental area for the stimulation of global financial investment in the United States. We are offering away also much for too small of an investment.


The local facilities, with their half-million systems, essentially undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should be concerning developing company entities, not easy financial investments. It should have to do with creating genuine tasks, not elaborate estimations regarding the indirect creation of tasks, which is now part of the regulation.


Probably that is among the reasons it has actually stopped working year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with middlemen, both public and private. The program has even more than its share of detractions, which I will certainly get involved in later if any person is interested.


This is an agency that enjoys to claim yes to applicants, yet as the table in my statement reveals, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that no one has actually talked around a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and forever reason

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Seventh, in this program visas most likely to people that might not obtain them any other means and to people whose organized investment is really much less, according to the Federal Get, than the ordinary mean web worth of all American family members in 2007. Allow me increase on among my observations.


My price quote based upon the capitalists' environment-friendly card applications filed 2 years after the very first investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not provide the sort of information that we might use on this.


For every $100 of increased international financial investment that year, the EB program contributed one cent. Under a much a lot more unsteady statistical base, the first applications of potential immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $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 technique team.




Divine acted as Principal Guidance of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program secretive method. He was elected, as I understand, vice head of state of the Association to Purchase U.S.A., the national market association of regional facilities.


Divine, we are thrilled to have you here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were used, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is growing and getting toward that. Specifically as USCIS, the agency that looks after the program, has been making the rules more clear and the processes more rational and clear for individuals that are arranging investments and for the investors who are investing, more people have actually been willing and able to put effort and cash into the process to locate here good tasks and develop them, and afterwards extra investors have actually been willing to spend their money and take the danger and utilize the cash to develop the jobs that is the factor of the program.

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These tasks do not wait around forever, and USCIS comprehends that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The regional center component of the program is not. It belongs to an appropriations costs that was enacted in 1992, and because then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to work up a job and then to get the capitalists approved. And they do not desire their money moving with till they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of projects.

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I would certainly such as to clarify that the Regional Facility 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 law that is part of the code. It just is a fact that a lot of the local centers that are pooling investments have established those in locations of high unemployment or in backwoods where half- million-dollar financial investments are enabled, which makes feeling.