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The program is put in an extremely odd and non-helpful governmental area for the stimulation of international investment in the United States. We are giving away as well much for also small of an investment.


The regional centers, with their half-million systems, essentially undercut the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should have to do with developing company entities, not easy financial investments. It must have to do with creating genuine work, not elaborate estimations regarding the indirect creation of work, which is currently component of the legislation.


Probably that is one of the reasons it has failed every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with middlemen, both public and private. The program has even more than its share of rumors, which I will certainly enter later if any person is interested.


This is a firm that likes to state yes to applicants, yet as the table in my testimony shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has truly talked about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently factor

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Seventh, in this program visas go to individuals who can not get them differently and to people whose organized investment is really less, according to the Federal Get, than the average mean total assets of all American families in 2007. Allow me increase on one of my observations.


My quote based on the capitalists' eco-friendly card applications filed 2 years after the initial financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not give the kind of data that we can use on this.


For every $100 of enhanced foreign investment that year, the EB program contributed one cent. Under a much a lot more unsteady analytical base, the first applications of potential immigrant investors, USCIS is informing journalists 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 paying attention to me. Chairman Leahy. He is the head of the firm's immigration method group.




Divine served as Principal Counsel of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Acting Replacement Supervisor. He has actually worked thoroughly with the EB-5 program in exclusive practice. He was chosen, as I understand, vice head of state of the Association to Purchase United States, the national sector association of local centers.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is expanding and getting toward that. Especially as USCIS, the company that oversees the program, has actually been making the guidelines clearer and the procedures a lot more sensible and clear for the individuals that are arranging investments and for the capitalists that are spending, more people have actually agreed and able to place initiative and money see right into the process to find excellent tasks and create them, and afterwards more capitalists have agreed to invest their money more tips here and take the threat and make use of the money to develop the work that is the factor of the program.

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These tasks do not wait about for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It is component of an appropriations costs that was established in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to develop a project and afterwards to get the investors approved. And they do not want their money streaming through up until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already inhibiting the development of tasks.

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I would certainly like to clarify that the Regional Center 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 regulation that becomes part of the code. It just is a truth that a lot of the local facilities that are image source pooling investments have set those in locations of high joblessness or in rural locations where half- million-dollar financial investments are enabled, which makes good sense.