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First, the program is put in a very odd and non-helpful governmental location for the stimulation of international investment in the USA. Second, its scale is all wrong. We are handing out way too much for too small of a financial investment. Better, increasing financial backing half a million bucks a tranche is, to claim the least, inefficient.


The local centers, with their half-million systems, essentially damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should be about creating business entities, not easy financial investments. It must have to do with creating real jobs, not clarify computations concerning the indirect creation of work, which is currently part of the legislation.


Maybe that is one of the reasons it has stopped working every year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also full of intermediaries, both public and personal. The program has more than its share of rumors, which I will certainly enter later if any person is interested.


This is an agency that likes to say yes to applicants, but as the table in my testimony reveals, USCIS policemans have far more problem with EB-5 applications than others. I think that is something that no one has actually really chatted about much. EB5 Regional Center Program. There are high rates of internal denials in this program and for great reason

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Seventh, in this program visas go to individuals that can not obtain them differently and to individuals whose scheduled investment is actually much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Let me increase on among my observations.


My estimate based upon the investors' eco-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not provide the sort of data that we could make use of on this.


So for each $100 of increased international financial investment that year, the EB program contributed one dime. Under a a lot more shaky analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the level of financial investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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




Divine functioned as Chief Counsel of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he view it was Acting Supervisor, and then Acting Replacement Director. He has worked extensively with the EB-5 program secretive method. He was elected, as I understand, vice president of the Organization to Purchase U.S.A., the national market organization of you can find out more regional facilities.


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


At a lot of, if all 10,000 slots were used, it would be 1 percent of the migration each year to the USA. It is not near that yet, however it is growing and getting towards that. Particularly as USCIS, the firm that manages the program, has been making the regulations more clear and the processes extra sensible and clear for the individuals that are arranging financial investments and for the financiers that are investing, more people have actually wanted and able to put effort and cash into the procedure to locate good jobs and establish them, and afterwards more investors have actually been eager to invest their money and take the danger and make use of the cash to develop the work that is the factor of the program.

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These tasks do not linger forever, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, in fact, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The local center part of the program is not. It becomes part of an appropriations costs that was established in 1992, and considering that then that program has been prolonged five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes a great while to work up a project and afterwards to check out here get the financiers approved. And they do not want their cash flowing via until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the advancement of projects.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It simply is a reality that a lot of the regional centers that are pooling financial investments have established those in areas of high unemployment or in rural areas where half- million-dollar financial investments are enabled, which makes sense.