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The program is positioned in an extremely weird and non-helpful administrative place for the stimulation of international investment in the United States. We are giving away also much for too small of an investment.

The regional facilities, with their half-million schemes, basically undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, ought to be concerning developing company entities, not easy financial investments. It ought to be concerning creating actual jobs, not clarify estimations concerning the indirect production of jobs, which is currently part of the regulation.


Perhaps that is one of the factors why it has fallen short year after year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with middlemen, both public and private. The program has more than its share of scandals, which I will get right into later if anyone is interested.


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

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Seventh, in this program visas most likely to individuals who could not obtain them differently and to individuals whose planned financial investment is in fact less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Let me expand on among my observations.


My estimate based upon the investors' permit applications filed 2 years after the first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not give the type of information that we might use on this.


So for every $100 of boosted international investment that year, the EB program added one dime. Under a far more unsteady statistical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow 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 practice group.

Divine acted as Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Director. He has worked thoroughly with the EB-5 program secretive method. He was chosen, as I more info comprehend, vice president of the Association to Buy USA, the national market organization of regional facilities.


Divine, we are delighted to have you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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 many, if all 10,000 ports were used, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, yet it is growing and getting towards that. Particularly as USCIS, the firm that supervises the program, has been making the policies clearer and the processes extra logical and clear for the individuals that are organizing financial investments and for the investors who are investing, even more individuals have actually wanted and able to put effort and cash right into the procedure to discover excellent jobs and establish them, and afterwards more financiers have wanted to invest their cash and take the risk and use the cash to produce the tasks that is the factor of the program.

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These jobs do not linger for life, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was mentioned

The regional facility part of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to develop a project and after that to obtain the capitalists authorized. And they do not want their money streaming via up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the growth of jobs.

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I want to make clear 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 normal EB-5 law that becomes part of the code. It just is a truth that many of the regional facilities that are pooling financial investments have set those in areas of high joblessness or in backwoods where half- million-dollar investments are allowed, and that makes good sense.