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The program is put in a very weird and non-helpful governmental place for the excitement of international financial investment in the United States. We are providing away as well much for too small of a financial investment.

The regional centers, with their half-million plans, basically damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to have to do with creating business entities, not easy investments. It should be concerning producing actual jobs, not specify calculations about the indirect production of jobs, which is now part of the legislation.

Possibly that is one of the reasons that it has actually failed time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of middlemen, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter later if any person is interested.

This is a company that enjoys to say yes to applicants, but as the table in my testimony shows, USCIS officers have a lot extra problem with EB-5 applications than others. I assume that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and permanently reason

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Seventh, in this program visas go to people who can not obtain them differently and to people whose scheduled investment is really much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Let me expand on one of my observations.

My estimate based upon the capitalists' permit applications submitted 2 years after the very first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not offer the kind of information that we could make use of on this.

For every $100 of enhanced international financial investment that year, the EB program contributed one cent. Under a far more wobbly statistical base, the initial applications of prospective immigrant capitalists, USCIS is telling reporters that the level 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 listening to me. Chairman Leahy. He is the head of the firm's migration technique team.


Divine functioned as Chief Advice of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has worked extensively with the EB-5 program in personal method. He was elected, as I comprehend, vice president of the Organization to Purchase United States, the national industry organization of regional centers.

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

At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is growing and getting toward that. Specifically as USCIS, the company that oversees the program, has actually been making the regulations more clear and the processes more rational and clear for individuals who are arranging financial investments and for the capitalists that are investing, more individuals have been prepared and able to place initiative and money into the procedure to discover great projects and develop them, and after that extra financiers have actually wanted to invest their cash and take the danger and make use of the cash to create the jobs that is the point of the program.

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These useful content jobs do not wait about for life, and USCIS comprehends that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, as a matter of fact, they are ready to refute applications that are not qualifying. And they do so, as was mentioned

The local center part of the program is not. It becomes part of an appropriations expense that was established in 1992, visit homepage and ever since 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 now and not nearer to the date of expiry in September.

The procedure takes an excellent while to work up a job and afterwards to obtain the financiers approved. And they do not desire their cash moving through until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the growth of projects.

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I would love to clear up that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that belongs to the code. It just is a reality that the majority visit this site right here of the local centers that are pooling financial investments have actually established those in areas of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes feeling.

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