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The program is placed in an extremely strange and non-helpful governmental location for the excitement of global financial investment in the United States. Second, its scale is all wrong. We are handing out too much for as well small of a financial investment. Even more, elevating financial backing half a million dollars a tranche is, to state the least, inefficient.


The regional facilities, with their half-million plans, basically undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must have to do with creating company entities, not easy financial investments. It must have to do with creating actual jobs, not clarify estimations about the indirect production of work, which is currently part of the regulation.


Perhaps that is one of the reasons that it has failed every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also full of intermediaries, both public and exclusive. The program has even more than its share of rumors, which I will get involved in later if anyone is interested.


This is a firm that loves to state yes to applicants, yet as the table in my testament shows, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that no one has truly spoken around a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas most likely to people that could not obtain them any kind of other method and to individuals whose scheduled investment is really less, according to the Federal Reserve, than the ordinary mean internet worth of all American families in 2007. Let me broaden on among my observations.


My estimate based upon the financiers' eco-friendly card applications submitted 2 years after the initial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not supply the type of data that we can use on this.


So for every single $100 of boosted international investment that year, the EB program contributed one penny. Under a much extra shaky analytical base, the first applications of prospective immigrant capitalists, USCIS is informing journalists that the degree of investment my link in the just-concluded year had to do with $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 company's immigration method group.




Divine acted as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 until straight from the source November 2006, the year in which he was Performing Director, and then Performing Deputy Director. He has functioned thoroughly with the EB-5 program in private technique. He was chosen, as I comprehend, vice president of the Organization to Purchase USA, the national sector association of regional facilities.


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


At many, if all 10,000 ports were utilized, it would be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Particularly as USCIS, the firm that supervises the program, has been making the rules more clear and the processes much more sensible and clear for the individuals that are organizing investments and for the financiers that are investing, more individuals have been ready and able to place effort and cash into the process to find good tasks and special info develop them, and after that extra investors have been willing to invest their cash and take the danger and utilize the cash to create the work that is the point of the program.

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These tasks do not wait about forever, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It is component of an appropriations bill that was enacted in 1992, and considering that 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 date of expiration in September.


The process takes a good while to function up a project and after that to get the investors approved. And they do not desire their money moving through until they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is currently preventing the development of tasks.

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I want to clear up that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It just is a fact that the majority of the regional centers that are merging investments have actually established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes good sense.