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The program is positioned in a very weird and non-helpful administrative area for the excitement of worldwide investment in the United States. Second, its scale is all incorrect. We are offering away way too much for too little of an investment. Additionally, increasing financial backing half a million bucks a tranche is, to say the least, ineffective.


The local facilities, with their half-million schemes, essentially undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should have to do with producing business entities, not passive investments. It must have to do with creating genuine work, not elaborate calculations about the indirect creation of tasks, which is currently component of the regulation.


Maybe that is one of the factors why it has stopped working time after time to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too full of intermediaries, both public and private. The program has more than its share of detractions, which I will get involved in later if any person is interested.


This is an agency that loves to claim yes to applicants, however as the table in my testimony reveals, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that nobody has actually actually talked around much. EB5 Regional Center Program. There are high prices of inner denials in this program and forever factor

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Seventh, in this program visas most likely to people that could not get them differently and to individuals whose organized investment is in fact less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Allow me increase on one of my monitorings.


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


For every $100 of raised international investment that year, the EB program contributed one dime. Under a a lot more unsteady analytical base, the initial applications of prospective immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thank here you for paying attention to me. Chairman Leahy. He is the head of the company's immigration method group.




Divine acted as Chief Counsel of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Director. He has worked extensively with the EB-5 program in private practice. He was chosen, as I understand, vice president of the Organization to Invest in United States, the national sector organization of local facilities.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is expanding and getting toward that. Specifically as USCIS, the agency that oversees the program, has been making the guidelines clearer and the procedures more rational and clear for the individuals that are arranging investments and for the investors who are investing, even more individuals have been ready and able to put initiative and money right into the procedure to locate excellent jobs and establish them, and after that a lot more financiers have been eager to invest their money and take the risk and use the cash to produce the tasks that is the point of the program.

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These jobs do not linger for life, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, actually, they prepare to refute applications that are not certifying. And they do so, as was stated


The regional center part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and given that then that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes an excellent while to work up a task and afterwards to get the investors authorized. And they do not want their money streaming through till they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the development of projects.

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I wish to make clear that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 legislation that belongs to the code. It just is a truth that many of the local centers that are pooling investments have established those in areas of high joblessness or in rural locations where fifty percent- million-dollar financial investments are permitted, and that makes good sense.