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The program is put in a very strange and non-helpful bureaucratic place for the stimulation of worldwide investment in the United States. We are giving away too much for also small of an investment.

The local centers, with their half-million schemes, essentially damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to have to do with developing company entities, not easy investments. It must be concerning developing genuine work, not specify estimations concerning the indirect development of jobs, which is currently part of the regulations.


Perhaps that is just one of the factors why it has failed year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with middlemen, both public and exclusive. The program has more than its share of rumors, which I will get involved in later if any person is interested.


This is a company that likes to say yes to candidates, but as the table in my testimony shows, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that no one has actually spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals that can not obtain them differently and to individuals whose planned financial investment is in fact less, according to the Federal Reserve, than the average mean net worth of all American family members in 2007. Allow me increase on among my monitorings.


My price quote based upon the capitalists' permit applications filed 2 years after the initial financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not supply the sort of information that we can use on this.


So for each $100 of raised foreign investment that year, the EB program contributed one dime. Under a far more unsteady analytical base, the initial applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year was concerning $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 acted as Principal Counsel of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was chosen, as I understand, vice head of state of the Organization to Purchase United States, the nationwide market association of local centers.


Divine, we are delighted to have you here. Please go on, sir. here STATEMENT OF ROBERT C. DIVINE, LAWYER, 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, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the agency that supervises the program, has been making the rules clearer and the processes a lot more sensible and clear for individuals that are arranging financial investments and for the capitalists who are investing, even more people have wanted and able to put initiative and money into the procedure to find great jobs and develop them, and afterwards extra investors have wanted to spend their money and take the danger and utilize the cash to create the work that is the point of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was discussed

The local center component of the program is not. It becomes part of an appropriations expense that was passed in 1992, and since then that program has actually been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to develop a job and after that to obtain the financiers accepted. And they do not want their money moving with till they have been authorized. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of tasks.

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I would certainly such as to make clear that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 law that belongs to the code. It simply is a fact that a lot of the local centers that are pooling financial investments have actually established those instead of high unemployment or in rural areas where half- million-dollar financial investments are permitted, which makes feeling.