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The program is put in a really weird and non-helpful governmental location for the excitement of worldwide financial investment in the United States. We are offering away also much for also small of a financial investment.


The regional centers, with their half-million systems, essentially undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should be concerning producing organization entities, not passive investments. It should have to do with creating actual tasks, not clarify calculations concerning the indirect development of tasks, which is currently part of the legislation.


Probably that is one of the reasons it has actually failed time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also full of middlemen, both public and personal. The program has even more than its share of scandals, which I will certainly get involved in later on if any person is interested.


This is a company that enjoys to state yes to applicants, yet as the table in my statement reveals, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that no one has actually actually spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and for excellent factor

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


My estimate based on the investors' eco-friendly card applications filed 2 years after the initial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not give the type of information that we can use on this.


For every $100 of raised foreign investment that year, the EB program contributed one dime. Under a far more unsteady statistical base, the preliminary applications of potential immigrant financiers, USCIS is telling reporters that the degree of financial 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 company's migration method team.




Divine served as Chief Advice of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has worked thoroughly with the EB-5 program in exclusive practice. He was elected, as I understand, vice head of state of the Association to Buy USA, the nationwide sector organization of local centers.


Divine, we are delighted to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were used, 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 firm that manages the program, has been making the policies more clear and the procedures much more logical and clear for the individuals that are organizing financial investments and for the financiers who are spending, even more people have agreed and able to put initiative and money right into the procedure to find good projects and develop them, and then much more investors have agreed to invest their money and take the risk and make use of the money to create the jobs that is the factor of the program.

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These projects do not wait around for life, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, in fact, they are ready to reject applications that are not certifying. And they do so, as was stated


The local center part of the program is not. It is part of an appropriations bill that was passed in 1992, and given that then that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes a great while to work up a job and then to get the investors authorized. And they do not desire their cash moving through until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already discouraging the advancement of jobs.

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I want to make clear that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 legislation that is part of the code. It simply EB5 Regional Center Program is a truth that a lot of the local facilities that are merging investments have established those in locations of high joblessness or in backwoods where half- million-dollar financial investments are allowed, and that makes good sense.