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The program is positioned in a really strange and non-helpful governmental area for the stimulation of global investment in the United States. We are giving away as well much for too small of an investment.


The regional facilities, with their half-million schemes, essentially damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be concerning creating company entities, not easy investments. It should have to do with creating actual work, not clarify calculations about the indirect development of jobs, which is currently part of the regulations.


Possibly that is among the reasons that it has failed year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too full of intermediaries, both public and personal. The program has greater than its share of detractions, which I will enter into later if anybody is interested.


This is a firm that enjoys to say yes to candidates, however as the table in my testimony reveals, USCIS officers have a lot more problem with EB-5 applications than others. I think that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and for excellent factor

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Seventh, in this program visas go to individuals that can not get them differently and to individuals whose organized financial investment is really much less, according to the Federal Reserve, than the average mean internet worth of all American households in 2007. Allow me expand on among my monitorings.


My estimate based on the capitalists' permit applications submitted 2 years after the initial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not give the type of information that we can use on this.


For every $100 of increased international financial investment that year, the EB program contributed one dime. Under a much more unsteady analytical base, the first applications of would-be immigrant capitalists, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept 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 served as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Director. He has functioned thoroughly with the EB-5 program in exclusive practice. He was chosen, as I recognize, vice president of the Association to Spend in United States, the national sector organization of local facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the agency that manages the program, has been making the policies clearer and the processes more sensible and clear for the people that are organizing financial investments and for the capitalists who are investing, even more people have wanted and able to place effort find out and cash right into the procedure to discover good tasks and create them, and after that more financiers have actually been ready to spend their money and take the risk and utilize the cash to create the jobs that is the point of the program.

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These projects do not wait about for life, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The local facility part of the program is not. It is component of an appropriations bill that was established in 1992, and ever since that program has actually been prolonged five 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 view it now of expiry in September.


The see this here process takes a great while to work up a task and after that to get the financiers approved. And they do not want their money moving through until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the growth of tasks.

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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 point. The idea of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It just is a fact that a lot of the local centers that are pooling financial investments have actually established those in places of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, which makes good sense.