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

The local centers, with their half-million schemes, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should be about producing company entities, not passive investments. It should be about producing actual work, not elaborate computations regarding the indirect development of tasks, which is now part of the regulation.


Perhaps that is just one of the reasons it has fallen short every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too loaded with intermediaries, both public and exclusive. The program has more than its share of scandals, which I will enter into later on if any person is interested.


This is a company that likes to say yes to candidates, yet as the table in my testimony reveals, USCIS policemans have much extra difficulty with EB-5 applications than others. I think that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and completely factor

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Seventh, in this program visas go to individuals that can not obtain them differently and to individuals whose organized financial investment is really less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Let me broaden on among my observations.


My estimate based upon the capitalists' environment-friendly card applications filed 2 years after the initial financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not give the kind of information that we could utilize on this.


For every $100 of increased international financial investment that year, the EB program added one cent. Under a much more unsteady analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's immigration technique team.

Divine worked as Principal Guidance of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Director, and then Performing Replacement Director. He has actually functioned extensively with the EB-5 program secretive method. He was chosen, as I understand, vice president of the Association to Buy United States, the national industry association of regional facilities.


Divine, we are happy to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (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 certainly be 1 percent of the migration annually to the United States. It is look at this web-site not near that yet, but it is growing and obtaining toward that. Especially as USCIS, the firm that oversees the program, has been making the policies clearer and the processes extra sensible and clear for the individuals who are organizing investments and for the capitalists who are spending, even more individuals have wanted and able to place effort and money right into the process to discover good projects and develop them, and then more capitalists have actually agreed to spend their cash and take the danger and use the cash to produce the tasks that is the point of the program.

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These additional info tasks do not wait around permanently, and USCIS comprehends that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they are ready to refute applications that are not qualifying. And they do so, as was stated

The local center part of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to develop a task and afterwards to get the investors accepted. And they do not desire their cash streaming with up until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already preventing the development of tasks.

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I want 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 function of the normal EB-5 This Site legislation that becomes part of the code. It simply is a truth that the majority of the local centers that are merging investments have actually set those instead of high unemployment or in rural areas where half- million-dollar financial investments are enabled, and that makes good sense.