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The program is positioned in a very strange and non-helpful administrative location for the excitement of international financial investment in the United States. We are providing away also much for too small of an investment.


The local facilities, with their half-million schemes, essentially damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to be regarding developing service entities, not easy financial investments. It ought to have to do with creating genuine tasks, not clarify computations concerning the indirect development of work, which is now part of the regulation.


Probably that is just one of the reasons it has actually stopped working year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also filled up with intermediaries, both public and private. The program has greater than its share of detractions, which I will certainly enter into later on if anyone is interested.


This is a firm that likes to say yes to candidates, yet as the table in my testimony reveals, USCIS policemans have far more trouble with EB-5 applications than others. I assume that is something that nobody has truly discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever factor

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Seventh, in this program visas most likely to people who might not obtain them any kind of other way and to individuals whose scheduled investment is really less, according to the Federal Reserve, than the average mean web well worth of all American family members in 2007. Allow me expand on one of my monitorings.


My estimate based on the investors' environment-friendly card applications filed 2 years after the first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not give the sort of information that we might use on this.


For every $100 of enhanced foreign financial investment that year, the EB program added one penny. Under a far more shaky statistical base, the initial applications of would-be immigrant capitalists, USCIS is telling 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 paying attention to me. Chairman Leahy. He is the head of the company's immigration method team.




Divine functioned as Chief Counsel of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Supervisor. He has functioned extensively with the EB-5 program in personal technique. He was elected, as I recognize, vice president of the Association to Invest in United States, the national industry organization of regional centers.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, 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 ports were used, it would be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is expanding and getting toward that. Especially as USCIS, the firm that supervises the program, has actually been making the policies more clear and the processes a lot more logical and clear for the people who are arranging investments and for the investors that are spending, even more people have wanted and able to put initiative and money right into the procedure to find good tasks and establish them, and afterwards extra investors have actually been willing to invest their money and take the danger and use the cash to develop the work that is the factor of the program.

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These tasks do not linger for life, and USCIS comprehends that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, actually, they are ready to reject applications that are not qualifying. 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 given that then that program has been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes a good while to develop a project and afterwards to get the capitalists authorized. And they do not want their cash moving through up until they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently preventing the development of jobs.

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I wish to clarify that the Regional Center Program is not the same as the half-million-dollar point. The idea of half a million check here or a million is a feature of the regular EB-5 legislation that is component of the code. It just is a fact that many of the local centers that are merging financial investments have actually established those in areas of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes good sense.