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The program is put in an extremely odd and non-helpful governmental location for the excitement of global financial investment in the United States. We are providing away too much for too little of a financial investment.


The regional centers, with their half-million systems, basically undercut the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, must have to do with producing service entities, not passive financial investments. It should be concerning developing actual tasks, not clarify computations about the indirect production of tasks, which is now part of the regulation.


Maybe that is one of the reasons that it has fallen short year after year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of middlemen, both public and exclusive. The program has even more than its share of detractions, which I will certainly get involved in later on if any person is interested.


This is an agency that likes to claim yes to applicants, however as the table in my testimony shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually truly spoken around much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever reason

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Seventh, in this program visas go to individuals that could not get them any other way and to people whose planned investment is actually less, according to the Federal Get, than the typical mean net worth of all American households in 2007. Let me broaden on among my monitorings.


My estimate based upon the capitalists' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not offer the sort of data that we might use on this.


For every $100 of raised international financial investment that year, the EB program added one cent. Under a much more shaky statistical base, the preliminary applications of potential immigrant capitalists, USCIS is informing reporters that the level of financial investment in the just-concluded year was concerning $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 Chief Guidance of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Director, and then Acting Replacement Supervisor. He has worked extensively with the EB-5 program secretive practice. He was chosen, as I comprehend, vice president of the Organization to Invest in USA, the nationwide market organization of local.


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


At many, if all 10,000 ports were utilized, it would be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the company that supervises the program, has actually been making the rules more clear and the processes extra logical and clear for individuals who are arranging financial investments and for the financiers who are spending, even more individuals have actually been ready and able to put initiative and cash into the process to locate excellent jobs and create them, and after that a lot more financiers have actually agreed to invest their money and take the threat and use the cash to create the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, actually, they are ready to reject applications that are not qualifying. And they do so, as was pointed out


The local center component of the program is not. It belongs to an appropriations costs that was passed in 1992, and given that then that program has been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to work up a job and afterwards to get the capitalists authorized. And they do not desire their money flowing via until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth of projects.

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I would love to clarify that the Regional Center Program is not the same as the half-million-dollar thing. The concept of half a million or a million like it is a feature of the regular EB-5 law that belongs to the code. It simply is a reality that most of the local centers that are pooling financial investments have actually set those instead of high blog joblessness or in backwoods where half- million-dollar investments are enabled, and that makes good sense.