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The program is placed in a really odd and non-helpful administrative location for the stimulation of global financial investment in the United States. We are giving away also much for too tiny of an investment.

The regional centers, with their half-million plans, essentially damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must be regarding creating service entities, not easy financial investments. It should have to do with producing genuine work, not clarify computations regarding the indirect development of tasks, which is now part of the legislation.


Perhaps that is one of the reasons it has actually stopped working year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too filled up with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly get involved in later if anybody is interested.


This is a firm that enjoys to say yes to candidates, yet as the table in my statement shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I assume that is something that no one has truly spoken about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and completely factor

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Seventh, in this program visas go to individuals that can not get them any type of various other means and to individuals whose scheduled investment is actually much less, according to the Federal Reserve, than the ordinary mean net well worth of all American households in 2007. Allow me expand on among my observations.


My quote based on the investors' environment-friendly card applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not supply the type of information that we might utilize on this.


For every $100 of increased international investment that year, the EB program contributed one penny. Under a a lot more shaky statistical base, the first applications of would-be immigrant capitalists, USCIS is informing reporters 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 migration technique team.

Divine acted as Principal Counsel of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and then Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was chosen, as I recognize, vice head of state of the Organization to Spend in U.S.A., the nationwide sector association of regional.


Divine, we are pleased to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, but it is growing and obtaining toward that. Specifically as USCIS, the firm that manages the program, has been making the rules clearer and the procedures more reasonable and clear for individuals that are organizing financial investments and for the financiers who are investing, more individuals have actually wanted and able to put effort and money right into the procedure to locate great tasks and create them, and afterwards a lot more financiers have actually been prepared to spend their money and take the danger and utilize the cash to create the jobs that is the point of the program.

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These click here tasks 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 relaxing their analysis, and, actually, they prepare to reject applications that are not certifying. And they do so, as was pointed out

The regional center component of the program is not. It belongs to an appropriations expense that was passed in 1992, and given that then that program has been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to develop a job and after that to obtain the investors authorized. And they do not desire their money streaming through till they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the development of projects.

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I would certainly like to make clear that the Regional Center Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a fact that most of the local facilities that are pooling investments have set those in areas of high joblessness or in rural locations where half- million-dollar financial investments are allowed, which makes sense.