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The program is positioned in a very strange and non-helpful bureaucratic area for the excitement of worldwide investment in the United States. We are offering away too much for also tiny of an investment.


The regional centers, with their half-million schemes, essentially undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with producing organization entities, not easy financial investments. It should have to do with developing real jobs, not clarify estimations about the indirect development of jobs, which is currently component of the legislation.


Probably that is among the factors why it has failed time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has even more than its share of scandals, which I will get involved in later if anybody is interested.


This is an agency that enjoys to claim yes to candidates, but as the table in my statement reveals, USCIS police officers have a lot more problem with EB-5 applications than others. I believe that is something that no one has truly spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and forever factor

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Seventh, in this program visas go to individuals who can not get them differently and to individuals whose scheduled investment is in fact less, according to the Federal Reserve, than the ordinary mean total assets of all American households in 2007. Let me expand on among my observations.


My estimate based on the capitalists' permit applications filed 2 years after the initial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not give the kind of data that we could use on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one cent. Under a far more unsteady statistical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the degree of financial 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 company's immigration method team.




Divine acted as Chief Counsel of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and after that Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in exclusive technique. He was elected, as I comprehend, vice head of state of the Organization to Invest in United States, the nationwide industry organization of regional centers.


Divine, we are delighted to have you here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were made use of, it would be 1 percent of the migration annually to the United States. It click here is not near that yet, yet it is expanding and obtaining towards that. Especially as USCIS, the company that looks after the program, has actually been making the guidelines clearer and the processes a lot more reasonable and clear for the individuals that are organizing financial investments and for the financiers who are investing, more individuals have agreed and able to place initiative and cash right into the procedure to discover great jobs and establish them, and then much more investors have agreed to spend their cash and take the threat and make use of the cash to produce the jobs that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in fact, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The regional center part of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and considering that then that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to develop a job and then to get the financiers authorized. And they do not desire their money streaming through until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of jobs.

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I would certainly like 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 function of the routine EB-5 law that is component of the code. It just is a truth that many of the regional facilities that are pooling investments have established those instead of high unemployment or in rural locations where half- million-dollar financial investments are permitted, which makes good sense.