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The program is placed in a really odd and non-helpful bureaucratic area for the stimulation of international financial investment in the United States. We are offering away also much for also little of a financial investment.


The regional centers, with their half-million systems, basically damaged the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to be concerning developing organization entities, not passive financial investments. It ought to be concerning developing real tasks, not specify computations about the indirect creation of jobs, which is currently component of the regulations.


Perhaps that is just one of the reasons why it has failed year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too full of intermediaries, both public and exclusive. The program has even more than its share of detractions, which I will enter later on if anyone is interested.


This is a company that enjoys to claim yes to candidates, but as the table in my statement shows, USCIS officers have a lot a lot more difficulty with EB-5 applications than others. I think that is something that nobody has really discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for good reason

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Seventh, in this program visas most likely to individuals that could not get them differently and to individuals whose planned investment is actually much less, according to the Federal Get, than the ordinary mean internet worth of all American families in 2007. Allow me expand on among my monitorings.


My quote based on the capitalists' eco-friendly card applications submitted 2 years after the first financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not give the kind of information that we could use on this.


So for every single $100 of increased international financial investment that year, the EB program contributed one dime. Under a far more wobbly statistical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's migration practice team.




Divine acted as Chief Advice of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was chosen, as I recognize, vice president of the Organization to Buy United States, the national industry association of local centers.


Divine, we are thrilled to have you right here. Please go in advance, 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 used, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is expanding and getting towards that. Specifically as USCIS, the agency that manages the program, has been making the rules clearer and the processes much more reasonable and clear for the individuals that are arranging financial investments and for the capitalists that are investing, more individuals have actually wanted and able to place initiative and money right into the process to discover excellent projects and establish them, and after that much more capitalists have actually been eager to spend their money and take the threat and utilize the cash to create the work that is the point of the program.

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These tasks do not linger forever, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, as a matter of fact, they are ready to refute applications that are not certifying. And they do so, as was stated


The local center part of the program is not. It belongs to an appropriations costs that was established in 1992, and given that then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiry in September.


The process takes a great while to function up a job and after that to obtain the capitalists approved. And they do not desire their cash streaming with until read more they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the advancement of tasks.

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I want to clarify that the Regional Center Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 legislation that is component of the code. It just is a reality that many of the local centers that are pooling investments have established those in places of high joblessness or in backwoods where half- million-dollar financial investments are enabled, and that makes feeling.