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The program is put in a very weird and non-helpful bureaucratic place for the excitement of global investment in the United States. Second, its scale is all incorrect. We are giving away excessive for as well tiny of a financial investment. Better, increasing financial backing half a million dollars a tranche is, to state the least, inefficient.


The regional centers, with their half-million systems, essentially damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to be concerning producing organization entities, not passive investments. It needs to be concerning producing genuine tasks, not specify computations concerning the indirect development of jobs, which is currently component of the legislation.


Probably that is just one of the reasons that it has failed year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and exclusive. The program has even more than its share of detractions, which I will certainly get involved in later on if any person is interested.


This is a company that likes to claim yes to applicants, yet as the table in my statement shows, USCIS officers have much more difficulty with EB-5 applications than others. I think that is something that no one has really spoken about a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and forever factor

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Seventh, in this program visas go to people that might not obtain them differently and to individuals whose scheduled investment is in fact much less, according to the Federal Get, than the typical mean net well worth of all American family members in 2007. Let me increase on one of my monitorings.


My estimate based on the capitalists' permit applications submitted 2 years after the initial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not offer the type of data that we could use on this.


So for each $100 of boosted foreign financial investment that year, the EB program contributed one dime. Under a much extra unsteady analytical base, the preliminary applications of prospective immigrant financiers, USCIS is informing journalists that the level of financial investment in click now 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 company's migration practice group.




Divine functioned as Principal Advice of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Performing Deputy Director. He has functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I comprehend, vice head of state of the Organization to Spend in United States, the nationwide sector organization of regional.


Divine, we are delighted to have you right here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were utilized, it would be 1 percent of the immigration every year to the USA. It is not near that yet, however it is expanding and obtaining toward that. Especially as USCIS, the firm that oversees the program, has actually been making right here the regulations clearer and the processes a lot more sensible and clear for individuals that are arranging financial investments and for the capitalists that are spending, even more individuals have been willing and able to put initiative and cash into the procedure to discover good jobs and establish them, and afterwards much more financiers have wanted to invest their cash and take the risk and utilize the money to produce the work that is the point of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, as a matter of fact, they are ready to deny applications that are not qualifying. And they do so, as was mentioned


The regional facility part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since 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 read review nearer to the date of expiration in September.


The process takes a good while to develop a project and after that to get the financiers approved. And they do not want their cash flowing via until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already dissuading the advancement of tasks.

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I would love to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 regulation that belongs to the code. It simply is a truth that the majority of the regional centers that are merging financial investments have established those in locations of high unemployment or in backwoods where half- million-dollar financial investments are enabled, which makes sense.