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The program is placed in an extremely weird and non-helpful governmental location for the stimulation of global investment in the United States. We are giving away too much for too little of an investment.


The regional centers, with their half-million plans, basically damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must be concerning developing organization entities, not easy financial investments. It must be about developing genuine jobs, not clarify computations regarding the indirect production of work, which is currently component of the regulation.


Maybe that is just one of the reasons that it has actually stopped working every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with intermediaries, both public and personal. The program has more than its share of rumors, which I will obtain into later if anyone is interested.


This is an agency that loves to claim yes to candidates, however as the table in my statement shows, USCIS officers have far more problem with EB-5 applications than others. I believe that is something that no one has actually truly discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and completely factor

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Seventh, in this program visas go to people who can not get them any various other method and to individuals whose organized investment is really much less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Allow me broaden on one of my observations.


My price quote based upon the investors' copyright applications filed 2 years after the very first investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not give the kind of data that we can make use of on this.


For every $100 of enhanced international financial investment that year, the EB program added one dime. Under a a lot more wobbly statistical base, the first applications of potential immigrant financiers, USCIS is informing journalists that the level 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 company's migration practice group.




Divine functioned as Chief Advice of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in exclusive practice. He was elected, as I recognize, vice president of the Association to Invest in U.S.A., the nationwide market association of local facilities.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At most, if all 10,000 ports were used, it would be 1 percent of the migration every year to the United States. It is not near that yet, however it is growing and obtaining toward that. Particularly as USCIS, the firm that oversees the program, has been making the policies clearer and the processes extra logical and clear for individuals who are organizing investments and for the investors that are spending, even more people have been ready and able to put effort and cash right into the procedure to find excellent jobs and develop them, and afterwards much more capitalists have been ready to invest their money and take the threat and utilize the money to develop the work that is the point of the program.

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These tasks do not linger for life, and USCIS comprehends that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, actually, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The regional facility component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes a great while to function up a task and after that to get the financiers accepted. And they do not desire their cash moving through until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the development of projects.

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I would love to make clear that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It just is a fact that most of the regional facilities that are merging investments have actually established those instead of high unemployment or in country locations where half- million-dollar financial investments are allowed, and that makes good EB5 Regional Center Program sense.