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The program is placed in a very strange and non-helpful governmental place for the excitement of worldwide financial investment in the United States. We are giving away as well much for also little of a financial investment.


The regional facilities, with their half-million schemes, basically undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to have to do with creating business entities, not passive investments. It needs to be regarding creating genuine jobs, not clarify estimations concerning the indirect creation of work, which is currently component of the regulations.


Possibly that is just one of the reasons it has fallen short year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will certainly get right into later on if anybody is interested.


This is a firm that likes to claim yes to applicants, but as the table in my testimony reveals, USCIS police officers have far more trouble with EB-5 applications than others. I think that is something that nobody has truly discussed a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and forever reason

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


My price quote based upon the capitalists' permit applications filed 2 years after the initial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not provide the type of data that we can utilize on this.


So for each $100 of raised international investment that year, the EB program contributed one penny. Under a a lot more shaky analytical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year was regarding $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 functioned as Chief Advice of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Supervisor. He has actually worked thoroughly with the EB-5 program in personal method. He was you could try this out chosen, as I recognize, vice head of state of the Association to Invest in USA, the national sector association of local facilities.


Divine, we are delighted to have you right read this post here here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, but 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 more reasonable and clear for the people that are arranging financial investments and for the capitalists that are spending, more people have been willing and able to place initiative and money right into the process to find great projects and develop them, and then much more capitalists have agreed to spend their cash and take the risk and utilize the cash to create 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 trying to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional center component of the program is not. It belongs to an appropriations expense that was enacted in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be long-term, and it requires to why not try these out be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to work up a task and after that to obtain the financiers authorized. And they do not want their money streaming through until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently preventing the growth of tasks.

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I would love to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 law that is component of the code. It simply is a truth that the majority of the regional facilities that are merging financial investments have established those in locations of high joblessness or in backwoods where half- million-dollar financial investments are allowed, which makes good sense.