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The program is placed in a very strange and non-helpful bureaucratic area for the excitement of global financial investment in the United States. We are providing away too much for too small of an investment.


The regional centers, with their half-million plans, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must have to do with creating business entities, not easy financial investments. It needs to be about producing genuine work, not elaborate estimations about the indirect creation of tasks, which is currently part of the regulation.


Probably that is just one of the reasons that it has actually stopped working every year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and private. The program has more than its share of scandals, which I will certainly get right into later on if anybody is interested.


This is an agency that likes to say yes to candidates, but as the table in my testimony shows, USCIS police officers have far more difficulty with EB-5 applications than others. I assume that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever factor

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Seventh, in this program visas go to people that could not get them otherwise and to people whose planned investment is really less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Allow me broaden on one of my observations.


My estimate based upon the investors' permit applications filed 2 years after the very first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not provide the kind of information that we could make use of on this.


So for every single $100 of raised international investment that year, the EB program added one cent. Under a a lot more shaky analytical base, the initial applications of potential immigrant capitalists, USCIS is telling journalists that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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




Divine worked as Principal Counsel of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Replacement Director. He has worked thoroughly with the EB-5 program in personal technique. He was chosen, as I recognize, vice president of the Association to Spend in USA, the nationwide industry organization of local centers.


Divine, we are thrilled to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots get more info were used, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the company that supervises the program, has actually been making the guidelines more clear and the procedures much more reasonable and clear for the individuals who are organizing financial investments and for the capitalists who are investing, more people have actually agreed and able to put effort and cash right into the process to find great tasks and create them, and after that extra capitalists have wanted to spend their money and take the danger and use the cash to produce the jobs that is the factor of the program.

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These projects do not wait around forever, and USCIS comprehends that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, in reality, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The regional center part of the program is not. It belongs to an appropriations costs that was passed in 1992, and since then that program has actually been expanded five 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 procedure takes a good while to function up a task and afterwards to get the capitalists accepted. And they do not want their cash flowing with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already preventing the development of jobs.

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I want to clarify that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 legislation that belongs to the code. It just is a truth that a lot of the regional centers that are merging financial investments have actually set those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes feeling.