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The program is put in a very strange and non-helpful bureaucratic area for the stimulation of international financial investment in the United States. We are offering away as well much for also small of an investment.


The regional centers, with their half-million schemes, basically damaged the a lot more practical 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 have to do with producing company entities, not easy investments. It needs to be regarding creating genuine jobs, not clarify calculations regarding the indirect creation of tasks, which is now component of the regulations.


Perhaps that is one of the reasons why it has actually failed time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also filled with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will enter later on if anybody is interested.


This is a company that enjoys to say yes to applicants, yet as the table in my testimony shows, USCIS police officers have far more difficulty with EB-5 applications than others. I assume that is something that nobody has truly chatted about much. 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 go to people who might not obtain them differently and to individuals whose scheduled financial investment is in fact much less, according to the Federal Get, than the typical mean web worth of all American households in 2007. Let me expand on one of my monitorings.


My price quote based upon the financiers' permit applications filed 2 years after the very first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had regarding $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 enhanced foreign financial investment that year, the EB program contributed one dime. Under a far more unsteady statistical base, the first applications of potential immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow 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 worked as Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has actually worked thoroughly with the EB-5 program secretive method. He was elected, as I understand, vice head of state of the Association to Spend in USA, the nationwide market association of local.


Divine, we are pleased to have you here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is growing and obtaining towards that. Particularly as USCIS, the firm that supervises the program, has actually been making the rules clearer and the procedures more reasonable and clear for individuals who are organizing financial investments and for the capitalists who are spending, more individuals have actually wanted and able to place initiative and money into the procedure to locate good projects and establish them, and afterwards more financiers have actually agreed to invest their money and take the danger and make use of the cash to create the tasks that is the factor of the program.

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


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


The process takes a great while to develop a project and after that to obtain the financiers accepted. And they do not want their money flowing with until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the development of tasks.

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I want to make clear that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It just is a reality that most of the regional facilities click here that are merging financial investments have actually established those instead of high unemployment or in rural areas where half- million-dollar investments are allowed, which makes feeling.