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The program is placed in a very odd and non-helpful governmental place for the stimulation of global financial investment in the United States. We are offering away also much for as well little of a financial investment.


The local facilities, with their half-million systems, essentially damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to be regarding producing organization entities, not passive financial investments. It needs to be concerning developing actual tasks, not clarify computations about the indirect development of work, which is now component of the legislation.


Possibly that is one of the reasons it has stopped working every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with middlemen, both public and private. The program has more than its share of scandals, which I will enter into later if anybody is interested.


This is a firm that likes to state yes to applicants, yet as the table in my testament reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I assume that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high prices of inner denials in this program and completely factor

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Seventh, in this program visas most likely to people that could not obtain them any kind of various other method and to individuals whose organized investment is in fact less, according to the Federal Get, than the typical mean total assets of all American family members in 2007. Allow me increase on among my monitorings.


My estimate based on the investors' permit applications filed 2 years after the first investment-- these are the strong ones that stay 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 data that we could make use of on this.


So for every $100 of raised international investment that year, the EB program added one penny. Under a a lot more shaky statistical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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




Divine functioned as Chief Advise of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Supervisor. He has functioned extensively with the EB-5 program in private practice. He was chosen, as I understand, vice president of the Association to Buy USA, the nationwide market association of regional facilities.


Divine, we are pleased to have you here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the agency that looks after the program, has been making the regulations clearer and the procedures extra rational and clear for the individuals that are arranging financial investments and for the investors that are spending, more individuals have wanted and able to place initiative and money into the procedure to find great tasks and establish them, and after that extra investors have agreed to spend their cash and take the risk and use the cash to create the tasks that is the factor of the program.

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These projects do not wait check here around for life, and USCIS understands that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, actually, they prepare to refute applications that are not certifying. And they do so, as was stated


The regional facility component of the program is not. It is part of an appropriations costs that was enacted in 1992, and ever since that program has actually been extended 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 day of expiry in September.


The process takes an excellent while to develop a task and afterwards to get the investors accepted. And they do not desire their cash flowing via until they have been approved. And the specter of the expiry of this Regional Center Program in September is already discouraging the development of jobs.

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I wish to clear up 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 routine EB-5 law that becomes part of the code. It just is a truth that most of the regional facilities that are merging financial investments have actually established those instead of high joblessness or in backwoods where half- million-dollar investments are enabled, and that makes sense.