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The program is positioned in an extremely odd and non-helpful governmental location for the excitement of international financial investment in the United States. We are giving away also much for also little of a financial investment.

The local facilities, with their half-million plans, basically damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, must be about creating service entities, not passive investments. It needs to be regarding developing genuine jobs, not clarify estimations about the indirect production of jobs, which is currently part of the regulation.


Probably that is among the reasons it has failed time after time to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly obtain into later if anyone is interested.


This is a company that likes to state yes to applicants, but as the table in my testament reveals, USCIS policemans have much a lot more difficulty with EB-5 applications than others. I think that is something that nobody has truly talked about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals who can not get them any various other method and to individuals whose scheduled financial investment is in fact much less, according to the Federal Reserve, than the ordinary mean net well worth of all American family members in 2007. Let me expand on among my observations.


My price quote based on the capitalists' eco-friendly card applications submitted 2 years after the very first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not offer the kind of data that we can make use of on this.


For every $100 of boosted international financial investment that year, the EB program contributed one cent. Under a far more shaky statistical base, the preliminary applications of potential immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Let 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 technique team.

Divine offered as Principal Advice of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Director. He has worked thoroughly with the EB-5 program in exclusive method. He was elected, as I understand, vice head of state EB5 Regional Center Program of the Organization to Invest in USA, the nationwide industry organization of local centers.


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


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, but it is expanding and getting toward that. Specifically as USCIS, the agency that oversees the program, has actually been making the guidelines more clear and the procedures much more rational and clear for individuals who are arranging financial investments and for the investors who are spending, more individuals have agreed and able to put initiative and money right into the process to find excellent projects and develop them, and after that a lot more investors have wanted to invest their cash and take the threat and utilize the cash to produce the work that is the factor of the program.

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These tasks do not wait around for life, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was mentioned

The regional facility part of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a great while to develop a task and after that to obtain the investors approved. And they do not want their cash moving with up until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is already dissuading the growth of projects.

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I would like to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 legislation that becomes part of the code. It simply is a truth that many of the regional centers that are merging financial investments have actually established those instead of high joblessness or in country locations where fifty percent- million-dollar financial investments are allowed, and that makes good sense.