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The program is placed in an extremely odd and non-helpful bureaucratic area for the stimulation of worldwide investment in the United States. Second, its range is all incorrect. We are handing out too much for also small of an investment. Further, raising financial backing half a million bucks a tranche is, to claim the least, inefficient.


The regional centers, with their half-million systems, essentially damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should have to do with creating service entities, not easy investments. It ought to be regarding developing genuine tasks, not specify calculations concerning the indirect creation of jobs, which is currently part of the regulations.


Maybe that is among the reasons it has fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with middlemen, both public and personal. The program has greater than its share of rumors, which I will certainly get involved in later on if anybody is interested.


This is a company that likes to claim yes to candidates, but as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I think that is something that no one has truly spoken about a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and permanently reason

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Seventh, in this program visas most likely to people that can not get them otherwise and to people whose scheduled investment is in fact less, according to the Federal Get, than the ordinary mean total assets of all American families in 2007. Let me increase on among my observations.


My estimate based upon the financiers' eco-friendly card applications submitted 2 years after the very first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not supply the type of data that we can make use of on this.


So for every single $100 of enhanced foreign financial investment that year, the EB program contributed one dime. Under a far more unsteady analytical base, the first applications of prospective immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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




Divine worked as Chief Advice of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and after that Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program in exclusive method. He was chosen, as I comprehend, vice head of state of the Organization to Buy U.S.A., the nationwide market organization of regional 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, Senator Grassley, and others.


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration reference annually to the United States. It is not near that yet, however it is expanding and obtaining towards that. Particularly as USCIS, the agency that manages the program, has actually been making the policies more clear and review the processes extra logical and clear for individuals that are arranging investments and for the capitalists who are investing, more people have been eager and able to put effort and money into the procedure to locate great jobs and develop them, and then more investors have actually wanted to spend their money and take the risk and make use of the cash to develop the work that is the factor of the program.

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These jobs do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was stated


The local center part of the program is not. It is component of an appropriations bill that was passed in 1992, and find this because then that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a good while to work up a project and after that to get the financiers authorized. And they do not want their money streaming through until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the growth of projects.

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I would love to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 law that belongs to the code. It just is a reality that most of the local facilities that are pooling investments have actually set those instead of high joblessness or in rural locations where fifty percent- million-dollar investments are permitted, and that makes good sense.