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The program is positioned in a really strange and non-helpful administrative area for the excitement of global investment in the United States. Second, its scale is all wrong. We are distributing way too much for also tiny of an investment. Even more, increasing financial backing half a million bucks a tranche is, to state the least, ineffective.


The local facilities, with their half-million plans, basically damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must be about producing business entities, not easy financial investments. It must be concerning creating real jobs, not elaborate calculations about the indirect development of tasks, which is currently part of the legislation.


Perhaps that is one of the reasons why it has actually stopped working time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well full of middlemen, both public and personal. The program has even more than its share of scandals, which I will enter into later on if anybody is interested.


This is a firm that loves to say yes to applicants, yet as the table in my testimony reveals, USCIS policemans have a lot a lot more problem with EB-5 applications than others. I think that is something that no one has really spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever reason

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Seventh, in this program visas go to people who can not get them otherwise and to individuals whose organized investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Let me broaden on one of my observations.


My quote based on the financiers' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not provide the kind of data that we might make use of on this.


So for every $100 of enhanced international investment that year, the EB program contributed one dime. Under a far more wobbly analytical base, the preliminary applications of prospective immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's immigration technique group.




Divine worked as Principal Guidance of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Director, see this website and then Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program in personal technique. He was elected, as I recognize, vice head of state of the Association to Spend in U.S.A., the national sector organization of local.


Divine, we are thrilled to have you right here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, but it is growing and obtaining toward that. Especially as USCIS, the agency that supervises the program, has been making the regulations clearer and the procedures more reasonable and clear for individuals who are organizing investments and for the capitalists who are investing, more individuals have wanted and able to place effort and money right into the process to discover good tasks and create them, and then much more financiers have actually find more wanted to invest their money and take the danger and use the cash to create the jobs that is the factor of the program.

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These projects do not linger permanently, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they are all set to deny applications that are not certifying. And they do so, as was pointed out


The regional center component of the program is not. It is component of an appropriations expense 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 irreversible, 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 task and after that to obtain the investors authorized. And they do not want their cash flowing through until they have been accepted. And the specter of the expiration of this Regional Center Program in September is already discouraging the growth of jobs.

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I wish to clear up that the Regional Facility Program navigate to this website is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 regulation that becomes part of the code. It just is a reality that the majority of the local centers that are merging financial investments have set those instead of high joblessness or in country locations where fifty percent- million-dollar financial investments are permitted, and that makes sense.