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The program is placed in an extremely strange and non-helpful governmental area for the stimulation of international financial investment in the United States. We are providing away also much for too little of an investment.


The local facilities, with their half-million plans, basically damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to have to do with developing organization entities, not passive investments. It should be regarding producing actual work, not specify calculations concerning the indirect development of jobs, which is currently component of the legislation.


Probably that is just one of the factors why it has actually fallen short every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also full of middlemen, both public and private. The program has greater than its share of scandals, which I will certainly enter into later on if anyone is interested.


This is a company that likes to say yes to candidates, yet as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and for excellent factor

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Seventh, in this program visas go to people that can not get them any kind of other method and to people whose scheduled investment is in fact less, according to the Federal Get, than the typical mean internet worth of all American family members in 2007. Allow me expand on among my monitorings.


My price quote based on the financiers' copyright applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not provide the sort of information that we might use on this.


For every $100 of enhanced international investment that year, the EB program added one cent. Under a far more wobbly analytical base, the preliminary applications of prospective immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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




Divine worked as Principal Advice of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I comprehend, vice president of the Organization to Invest in U.S.A., the nationwide sector organization of regional.


Divine, we are delighted to have you below. 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, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were used, it would be 1 percent of the immigration annually to the United States. It is not near that yet, but it is expanding and obtaining towards that. Specifically as USCIS, the firm that manages the program, has actually been making the rules more clear and here the processes a lot more sensible and clear for the people who are organizing investments and for the financiers that are spending, even more individuals have actually been prepared and able to put initiative and cash into the procedure to find good jobs and create them, and after that more capitalists have actually been ready to invest their cash and take the danger and utilize the cash to create the tasks that is the point of the program.

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These jobs do not wait about for life, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, actually, they prepare to reject applications that are not certifying. And they do so, as was pointed out


The local facility component of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to function up a job and afterwards to obtain the financiers approved. And they do not desire their cash moving through till they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of tasks.

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I want to make clear that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 law that is component of the code. It just is a fact that most of the local facilities that are pooling financial investments have established those instead of high joblessness or in rural areas where half- million-dollar financial investments are enabled, and that makes good sense.