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The program is put in a very odd and non-helpful administrative area for the stimulation of worldwide financial investment in the United States. We are giving away as well much for too small of a financial investment.


The local centers, with their half-million plans, essentially damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to have to do with developing business entities, not easy investments. It must be about producing actual work, not elaborate computations concerning the indirect creation of tasks, which is currently component of the legislation.


Probably that is among the reasons that it has actually fallen short every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of middlemen, both public and exclusive. The program has even more than its share of detractions, which I will certainly get involved in later on if anybody is interested.


This is a company that loves to claim yes to applicants, however as the table in my testimony shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has really chatted about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever factor

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Seventh, in this program visas go to individuals that can not obtain them otherwise and to individuals whose scheduled investment is in fact much less, according to the Federal Get, than the average mean total assets of all American households in 2007. Let me broaden on one of my observations.


My estimate based on the financiers' permit applications filed 2 years after the first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not give the type of information that we can use on this.


So for every single $100 of enhanced foreign investment that year, the EB program contributed one cent. Under a a lot more unsteady analytical base, the first applications of potential immigrant capitalists, USCIS is telling EB5 Regional Center Program reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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




Divine acted as Chief Counsel of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has actually functioned extensively with the EB-5 program in private practice. He was elected, as I recognize, vice president of the Association to Invest in U.S.A., the national industry organization of regional facilities.


Divine, we are thrilled to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is growing and getting towards that. Especially as USCIS, the agency that supervises the program, has been making the rules clearer and the procedures more rational and clear for the individuals who are arranging financial investments and for the financiers that are investing, even more individuals have wanted and able to put initiative and cash right into the process to locate good projects and develop them, and after that more capitalists have agreed to spend their money and take the threat and use the cash to create the work that is the factor of the program.

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These jobs do not wait about forever, and USCIS recognizes that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they are all set to reject applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to develop a task and after that to obtain the capitalists approved. And they do not desire their cash moving with up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the development of jobs.

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I would certainly like to clarify that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 regulation that becomes part of the code. It just is a reality that many of the regional facilities that are merging financial investments have set those instead of high joblessness or in rural locations where half- million-dollar investments are enabled, which makes good sense.