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


The regional centers, with their half-million schemes, essentially undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must be concerning developing service entities, not easy financial investments. It must have to do with producing real jobs, not specify estimations concerning the indirect development of tasks, which is now component of the regulation.


Perhaps that is one of the reasons that it has actually stopped working every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of intermediaries, both public and exclusive. The program has more than its share of rumors, which I will get involved in later if anybody is interested.


This is a firm that enjoys to state yes to applicants, but 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 no one has actually truly spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and forever factor

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Seventh, in this program visas go to individuals that can not get them differently and to individuals whose planned investment is in fact less, according to the Federal Reserve, than the typical mean internet well worth of all American families in 2007. Let me broaden on among my monitorings.


My estimate based on the financiers' environment-friendly card applications filed 2 years after the very first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not provide the kind of data that we might utilize on this.


So for every single $100 of raised foreign investment that year, the EB program contributed one cent. Under a much a lot more wobbly analytical base, the first applications of prospective immigrant capitalists, USCIS is informing reporters that the degree of financial investment in the just-concluded year was regarding $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 company's migration technique group.




Divine functioned as Chief Advise of the USA Citizenship and Immigration Services from check this site out July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Director. He has functioned extensively with the EB-5 program in private method. He was chosen, as I understand, vice president of the Association to Buy USA, the national industry organization of regional facilities.


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


At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Specifically as USCIS, the agency that manages the program, has actually been making the regulations clearer and the processes a lot more rational and clear for the individuals who are organizing financial investments and for the financiers who are spending, more individuals have actually agreed and able to put initiative and cash into the procedure to discover good tasks and establish them, and afterwards much more investors have actually agreed to spend their cash and check take the risk and use the cash to develop the tasks that is the point of the program.

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These jobs do not linger for life, and USCIS comprehends that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they are all set to refute applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It belongs to an appropriations bill that was enacted 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 requires to be done now and not nearer to the date of expiration in September.


The process takes a good while to develop a task and after that to obtain the financiers approved. And they do not desire their cash streaming visit the site with until they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the growth of jobs.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It just is a reality that most of the local facilities that are pooling financial investments have actually established those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are allowed, which makes good sense.