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The program is put in a really weird and non-helpful bureaucratic location for the stimulation of international investment in the United States. We are giving away too much for too tiny of a financial investment.


The local centers, with their half-million schemes, essentially damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must be about developing company entities, not easy investments. It should be regarding creating genuine jobs, not clarify calculations regarding the indirect creation of jobs, which is now component of the legislation.


Maybe that is among the reasons that it has stopped working every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of intermediaries, both public and private. The program has greater than its share of rumors, which I will enter later on if anybody is interested.


This is an agency that likes to say yes to applicants, yet as the table in my testimony shows, USCIS policemans have a lot more problem with EB-5 applications than others. I think that is something that nobody has actually discussed much. EB5 Regional Center Program. There are high prices of inner denials in this program and for good factor

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Seventh, in this program visas go to individuals who could not get them otherwise and to individuals whose organized investment is really less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me expand on among my monitorings.


My price quote based on the financiers' permit applications filed 2 years after the first financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not give the sort of data that we could use on this.


So for every $100 of increased international financial investment that year, the EB program added one penny. Under a much extra shaky statistical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year was concerning $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 practice group.




Divine served as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Supervisor. He has actually functioned extensively with the EB-5 program in private practice. He was chosen, as I recognize, vice head of state of the Association to Spend in USA, the nationwide industry organization of regional.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 ports were used, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the company that oversees the program, has actually been making the guidelines more clear and the processes much more rational and clear for the individuals that are organizing investments and for the investors that are spending, even more people have wanted and able to put effort and cash into the procedure to find good jobs and create them, and afterwards extra investors have wanted to invest their cash and take the threat and use the cash to create the jobs that is the point of the program.

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These tasks do not linger for life, 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 unwinding their analysis, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was discussed


The local center part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes a good while to work up a job and after that to obtain the financiers approved. And they do not want their cash moving through till they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already click here inhibiting the advancement of jobs.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 legislation that belongs to the code. It just is a truth that a lot of the regional centers that are pooling financial investments have set those in areas of high joblessness or in country areas where half- million-dollar financial investments are enabled, which makes good sense.