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The program is positioned in a very weird and non-helpful governmental location for the stimulation of worldwide investment in the United States. We are offering away as well much for too tiny of an investment.


The regional centers, with their half-million plans, basically undercut the more sensible 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 creating business entities, not passive investments. It should have to do with creating genuine work, not clarify computations regarding the indirect development of jobs, which is currently component of the legislation.


Perhaps that is one of the reasons it has actually stopped working every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well filled with intermediaries, both public and personal. The program has greater than its share of detractions, which I will enter into later if any person is interested.


This is an agency that likes to say yes to candidates, but as the table in my statement reveals, USCIS officers have far more trouble with EB-5 applications than others. I assume that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high rates of internal rejections in this program and for great factor

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Seventh, in this program visas go to people that might not get them any other way and to people whose planned investment is really less, according to the Federal Book, than the typical mean internet well worth of all American family members in 2007. Let me expand on one of my monitorings.


My price quote based upon the capitalists' copyright applications filed 2 years after the first investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not provide the kind of data that we could use on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a a lot more unsteady analytical base, the first applications of prospective immigrant investors, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do with $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 technique group.




Divine offered as Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program in personal method. website He was elected, as I recognize, vice head of state of the Association to Buy U.S.A., the nationwide industry organization of regional facilities.


Divine, we are happy to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were utilized, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and getting toward that. Particularly as USCIS, the agency that manages the program, has actually been making the regulations more clear and the processes more rational and clear for the people that are organizing financial investments and for the financiers who are investing, even more people have wanted and able to place initiative and cash right into the process to discover excellent projects and establish them, and after that extra investors have actually been prepared to spend their money and take the danger and use the cash to develop the jobs that is the factor of the program.

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These jobs do not linger forever, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It is part of an appropriations bill that was enacted in 1992, and ever since that program has been extended 5 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 expiry in September.


The process takes a great while to develop a job and after that to obtain the capitalists approved. And they do not want their cash flowing with up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the development of projects.

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I would love to make clear that the Regional Center Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 regulation that belongs to the code. It just is a reality that a lot of the local centers that are pooling investments have set those instead of high joblessness or in country areas where fifty percent- million-dollar financial investments are allowed, and that makes sense.