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The program is positioned in a very weird and non-helpful bureaucratic place for the stimulation of global investment in the United States. We are providing away also much for also small of an investment.

The local centers, with their half-million systems, essentially undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must be about developing company entities, not passive investments. It must have to do with producing genuine tasks, not clarify calculations regarding the indirect development of tasks, which is currently part of the regulation.


Maybe that is among the reasons that it has failed year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too full of middlemen, both public and exclusive. The program has more than its share of rumors, which I will certainly get involved in later on if anybody is interested.


This is a company that loves to state yes to candidates, however as the table in my testimony shows, USCIS policemans have far 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 interior rejections in this program and completely factor

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Seventh, in this program visas go to individuals that can not get them otherwise and to people whose planned financial investment is actually less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Allow me expand on one of my monitorings.


My estimate based on the capitalists' permit applications filed 2 years after the initial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not offer the type of data that we could make use of on this.


For every $100 of raised international financial investment that year, the EB program added one penny. Under a far more wobbly statistical base, the preliminary 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 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 team.

Divine worked as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and then Performing Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in exclusive practice. He was elected, as I comprehend, vice president of the EB5 Regional Center Program Organization to Spend in United States, the national industry association of local centers.


Divine, we are delighted to have you here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, however it is expanding and getting towards that. Specifically as USCIS, the company that oversees the program, has actually been making the regulations clearer and the processes extra logical and clear for individuals that are organizing financial investments and for the financiers who are spending, more people have actually agreed and able to put initiative and money into the procedure to find great tasks and develop them, and after that extra investors have wanted to spend their cash and take the risk and use the money to produce the work that is the factor of the program.

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These tasks do not linger forever, 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 unwinding their examination, and, as a matter of fact, they are prepared 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 bill that was established in 1992, and ever since that program has been expanded 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 day of expiry in September.


The process takes a great while to develop a job and after that to get the capitalists approved. And they do not desire their cash streaming through till they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently dissuading 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 normal EB-5 law that becomes part of the code. It just is a truth that the majority of the regional centers that are merging financial investments have actually established those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, and that makes sense.