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First, the program is positioned in a very strange and non-helpful bureaucratic area for the stimulation of global investment in the United States. Second, its scale is all wrong. We are providing away way too much for as well little of an investment. Even more, increasing financial backing half a million dollars a tranche is, to state the least, inefficient.

The regional centers, with their half-million systems, essentially undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to have to do with producing business entities, not easy financial investments. It should be about producing actual work, not elaborate estimations about the indirect production of tasks, which is now component of the regulations.

Perhaps that is just one of the reasons that it has actually fallen short year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too full of middlemen, both public and private. The program has more than its share of scandals, which I will certainly enter later if any person is interested.

This is a firm that enjoys to state yes to candidates, but as the table in my statement reveals, USCIS policemans have a lot 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 prices of internal rejections in this program and completely factor

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Seventh, in this program visas go to people who could not obtain them otherwise and to individuals whose scheduled financial investment is in fact less, according to the Federal Book, than the average mean total assets of all American families in 2007. Allow me expand on among my observations.

My estimate based upon the financiers' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not offer the type of data that we can use on this.

For every $100 of enhanced international investment that year, the EB program added one cent. Under a a lot more unsteady analytical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that check here the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's migration method group.


Divine worked as Principal Counsel of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program secretive technique. He was elected, as I understand, vice head of state of the Organization to Invest in United States, the national industry organization of local.

Divine, we are happy to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.

At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding and getting toward that. Specifically as USCIS, the company that oversees the program, has been making the rules clearer and the processes more logical and clear for individuals that are arranging investments and for the capitalists that are spending, more people have agreed and able to place initiative and money right into the process to locate excellent tasks and create them, and then more financiers have actually wanted to invest their cash and take the threat and use the cash to develop the work that is the point of the program.

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These tasks do not wait around for life, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, as a matter of fact, they are prepared to deny applications that are not qualifying. And they do so, as was pointed out

The local center component of the program is not. It is component of an appropriations costs that was passed in 1992, and considering that then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.

The process takes an excellent while to develop a job and afterwards to obtain the investors accepted. And they do not desire their cash flowing via up until they have been accepted. And the specter of the expiration of this Regional Center Program in September is already discouraging the development of jobs.

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I want to clear up 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 feature of the routine EB-5 legislation that belongs to the code. It simply is a truth that a lot of the regional facilities that are merging investments have actually set those in places of high unemployment or in country areas where fifty percent- million-dollar financial investments are enabled, and that makes good sense.

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