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The program is put in an extremely odd and non-helpful bureaucratic area for the stimulation of worldwide financial investment in the United States. We are giving away too much for also little of a financial investment.


The regional centers, with their half-million systems, basically undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should have to do with producing business entities, not passive financial investments. It ought to have to do with producing actual work, not elaborate estimations regarding the indirect development of work, which is currently part of the legislation.


Perhaps that is among the factors why it has actually fallen short every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too loaded with middlemen, both public and exclusive. The program has more than its share of rumors, which I will get involved in later on if anybody is interested.


This is a firm that loves to say yes to applicants, however as the table in my testament shows, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually really chatted about a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and completely reason

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Seventh, in this program visas most likely to individuals who might not obtain them otherwise and to individuals whose scheduled investment is really less, according to the Federal Book, than the ordinary mean internet well worth of all American households in 2007. Allow me expand on one of my observations.


My price quote based on the investors' eco-friendly card applications submitted 2 years after the very first investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not provide the sort of information that we could use on this.


So for each $100 of increased foreign financial investment that year, the EB program contributed one cent. Under a a lot more shaky analytical base, the first applications of prospective immigrant capitalists, USCIS is telling reporters that EB5 Regional Center Program 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 firm's migration practice group.




Divine offered as Principal Advise of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Deputy Supervisor. He has actually worked thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice president of the Organization to Spend in USA, the nationwide sector organization of local.


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


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is expanding and obtaining towards that. Especially as USCIS, the firm that manages the program, has actually been making the policies more clear and the processes more sensible and clear for individuals who are organizing investments and for the investors that are investing, more people have actually been willing and able to place effort and cash into the process to locate excellent tasks and create them, and after that extra investors have actually wanted to spend their money and take the risk and utilize the cash to produce the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was discussed


The regional facility component of the program is not. It is component of an appropriations bill 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 needs to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to work up a project and after that to obtain the capitalists authorized. And they do not desire their money streaming via until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already dissuading the growth of jobs.

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I would love to clarify that the Regional Center Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 law that belongs to the code. It simply is a fact that a lot of the regional facilities that are merging financial investments have set those in areas of high unemployment or in rural areas where fifty percent- million-dollar investments are permitted, and that makes feeling.