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The program is placed in an extremely strange and non-helpful bureaucratic location for the stimulation of global investment in the United States. We are giving away as well much for as well small of a financial investment.


The local centers, with their half-million schemes, basically damaged the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should have to do with developing organization entities, not easy investments. It needs to be concerning producing actual work, not elaborate calculations concerning the indirect development of work, which is now part of the legislation.


Probably that is among the reasons why it has fallen short time after time to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and private. The program has greater than its share of scandals, which I will enter into later on if any person is interested.


This is an agency that loves to state yes to applicants, yet as the table in my testimony shows, USCIS police officers have a lot a lot more problem with EB-5 applications than others. I assume that is something that no one has truly discussed much. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently reason

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Seventh, in this program visas go to individuals that could not get them otherwise and to individuals whose planned financial investment is in fact less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Allow me broaden on among my monitorings.


My price quote based on the capitalists' eco-friendly card applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not offer the type of data that we might make use of on this.


So for each $100 of enhanced international financial investment that year, the EB program added one dime. Under a a lot more unsteady analytical base, the initial applications of prospective immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year was concerning $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 company's migration practice group.




Divine functioned as Principal Guidance of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Director. He has functioned extensively with the EB-5 program in exclusive practice. He was chosen, as I recognize, vice head of state of the Association to Invest in U.S.A., the nationwide sector organization of local facilities.


Divine, we are delighted to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE check here United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were utilized, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, yet it is expanding and getting towards that. Especially as USCIS, the firm that looks after the program, has actually been making the guidelines clearer and the processes a lot more reasonable and clear for the people that are organizing investments and for the financiers that are investing, more people have actually wanted and able to put effort and cash into the process to locate great projects and develop them, and afterwards a lot more investors have been willing to invest their money and take the risk and make use of the cash to create the jobs that is the factor of the program.

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These projects do not wait about for life, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, as a matter of fact, they are ready to deny applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It is component of an appropriations costs that was enacted in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a good while to develop a project and after that to obtain the investors accepted. And they do not desire their cash flowing via until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently preventing the development of tasks.

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I wish to make clear 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 function of the routine EB-5 legislation that is component of the code. It simply is a fact that most of the regional centers that are pooling financial investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes good sense.