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The program is put in a really strange and non-helpful administrative location for the excitement of global investment in the United States. Second, its range is all incorrect. We are providing away too much for also tiny of an investment. Better, elevating venture resources half a million bucks a tranche is, to claim the least, ineffective.


The local centers, with their half-million schemes, essentially undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should be concerning creating company entities, not passive investments. It ought to be regarding creating actual jobs, not specify calculations regarding the indirect production of jobs, which is now component of the regulations.


Maybe that is among the reasons it has failed every year 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 exclusive. The program has even more than its share of scandals, which I will certainly get involved in later on if anyone is interested.


This is an agency that likes to say yes to candidates, however as the table in my testimony shows, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and forever factor

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Seventh, in this program visas most likely to people who can not get them any various other means and to people whose planned financial investment is in fact much less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Allow me broaden on one of my monitorings.


My price quote based on the financiers' permit applications filed 2 years after the very first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not provide the type of information that we might use on this.


For every $100 of enhanced international financial investment that year, the EB program added one penny. Under a much a lot more unsteady analytical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let click here us approve that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the company's immigration practice team.




Divine functioned as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and then Acting Replacement Director. He has actually functioned thoroughly with the EB-5 program secretive practice. He was elected, as I understand, vice president of the Association to Purchase USA, the national industry association of local facilities.


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


At most, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, however it is growing and getting toward that. Particularly as USCIS, the agency that oversees the program, has been making the rules clearer and the procedures a lot more reasonable and clear for individuals that are organizing investments and for the financiers who are spending, even more people have been ready and able to put effort and cash right into the process to find excellent jobs and establish them, and afterwards more capitalists have actually been prepared to invest their cash and take the threat and use the money to create the tasks that is the factor of the program.

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These projects do not linger forever, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, in fact, they are prepared to reject applications that are not certifying. And they do so, as was pointed out


The local center component of the program is not. It belongs to an appropriations expense 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 date of expiration in September.


The procedure takes a great while to work up a job and then to get the financiers authorized. And they do not want their money streaming with up until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently discouraging the advancement of jobs.

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I would such as to clarify that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 regulation that is part of the code. It simply is a fact that the majority of the local centers that are merging investments have actually set those instead of high joblessness or in rural locations where half- million-dollar financial investments are permitted, and that makes good sense.