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The program is put in an extremely weird and non-helpful governmental area for the excitement of global financial investment in the United States. We are giving away too much for too small of an investment.


The local centers, with their half-million plans, basically undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, must be about producing company entities, not passive financial investments. It ought to be concerning producing actual tasks, not specify estimations regarding the indirect development of jobs, which is now part of the regulations.


Probably that is among the reasons why it has actually failed 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 full of intermediaries, both public and private. The program has even more than its share of scandals, which I will certainly get involved in later on if anybody is interested.


This is a company that loves to claim yes to candidates, but as the table in my testament reveals, USCIS policemans have a lot extra trouble with EB-5 applications than others. I think that is something that nobody has actually truly discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and for excellent reason

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Seventh, in this program visas go to individuals who could not get them otherwise and to people whose organized financial investment is actually less, according to the Federal Reserve, than the typical mean web worth of all American family members in 2007. Allow me increase on among my observations.


My quote based upon the investors' permit applications submitted 2 years after the very first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not give the type of data that we can use on this.


So for each $100 of raised international financial investment that year, the EB program contributed one cent. Under a far more wobbly analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters 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 firm's immigration method group.




Divine worked as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Director. He has actually worked thoroughly with the EB-5 program secretive method. He was elected, as I recognize, vice head of state of the Organization to Buy United States, the nationwide market association of regional facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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 a lot of, if all 10,000 slots were made use of, it would be 1 percent of the migration annually to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the company that looks after the program, has been making the regulations clearer and the processes a lot more rational and clear for individuals that are organizing investments and for the capitalists who are investing, even more people have wanted and able to put effort and cash into the procedure to discover good projects and establish them, and afterwards more investors have wanted to spend more info their cash and take the risk and make use of the cash to produce the jobs that is the factor of the program.

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These tasks do not wait about for life, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The regional facility part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and since then that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiry in September.


The process takes a great while to develop a job and afterwards to get the investors approved. And they do not want their money flowing via until they have been approved. And the specter of the expiry of this Regional Facility Program in September is already discouraging the development of jobs.

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I would love to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 law that is component of the code. It just is a truth that most of the regional centers that are pooling investments have established those in locations of high unemployment or in rural locations where fifty percent- million-dollar financial investments are enabled, and that makes sense.