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


The local facilities, with their half-million schemes, essentially damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must be concerning developing organization entities, not easy financial investments. It should have to do with creating real jobs, not specify estimations about the indirect production of work, which is now part of the regulations.


Possibly that is just one of the reasons that it has actually fallen short year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of intermediaries, both public and private. The program has even more than its share of scandals, which I will get involved in later on if anyone is interested.


This is an agency that enjoys to state yes to candidates, however as the table in my testimony shows, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and completely factor

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Seventh, in this program visas go to people that might not obtain them otherwise and to people whose planned financial investment is actually less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Let 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 solid ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not provide the type of information that we can make use of on this.


So for every $100 of raised foreign financial investment that year, the EB program added one penny. Under a far more unsteady statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was concerning $1.2 click here billion. Let us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the company's immigration practice team.




Divine acted as Principal Counsel of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was chosen, as I understand, vice head of state of the Organization to Spend in USA, the national market organization of regional.


Divine, we are pleased to have you 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, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the immigration annually to the USA. It is not near that yet, however it is growing and obtaining towards that. Particularly as USCIS, the company that manages the program, has been making the policies clearer and the processes more rational and clear for individuals who are organizing investments and for the investors who are spending, more people have been willing and able to place effort and money into the process to find good jobs and develop them, and afterwards more capitalists have been eager to spend their money and take the danger and make use of the cash to create the tasks that is the point of the program.

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These tasks do not linger forever, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, actually, they are all set to refute applications that are not qualifying. And they do so, as was pointed out


The local center component of the program is not. It is part of an appropriations costs that was established in 1992, and considering that then that program has been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes a great while to develop a task and afterwards to obtain the capitalists approved. And they do not want their money moving through up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is currently preventing the development of jobs.

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I want to clarify that the Regional Center Program is not the same as the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It just is a truth that many of the local centers that are merging investments have actually set those in areas of high unemployment or in backwoods where half- million-dollar financial investments are enabled, and that makes sense.