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The program is put in a very odd and non-helpful administrative location for the excitement of worldwide financial investment in the United States. We are offering away too much for too little of a financial investment.


The local centers, with their half-million plans, basically undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be regarding developing company entities, not passive investments. It needs to be concerning creating actual jobs, not specify computations regarding the indirect creation of tasks, which is now component of the regulations.


Perhaps that is one of the reasons it has stopped working time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center 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 enter into later on if any person is interested.


This is a firm that enjoys to state yes to applicants, yet as the table in my testimony reveals, USCIS police officers have a lot a lot more problem with EB-5 applications than others. I assume that is something that no one has actually talked about much. EB5 Regional Center Program. There are high prices of interior rejections in this program and for good factor

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Seventh, in this program visas go to individuals that might not obtain them differently and to people whose scheduled investment is in fact much less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Let me broaden on among my monitorings.


My estimate based on the investors' permit applications filed 2 years after the first investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not offer the kind of information that we can make use of on this.


So for every single $100 of increased foreign investment that year, the EB program contributed one dime. Under a much more wobbly statistical base, the initial applications of prospective immigrant financiers, USCIS is telling 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 paying attention to me. Chairman Leahy. He is the head of the firm's immigration technique team.




Divine worked as Chief Guidance of the USA web link Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and after that Performing Replacement Supervisor. He has actually functioned extensively with the EB-5 program in personal practice. He was chosen, as I recognize, vice president of the Association to Spend in U.S.A., the nationwide sector organization of regional centers.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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, Legislator Grassley, and others.


At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and getting toward that. Especially as USCIS, the company that looks after the program, has actually been making the regulations more clear and the procedures a lot more rational and clear for the people who are arranging investments and for the investors that are spending, even more people have been prepared and able to put effort and cash right into the procedure to discover good tasks and create them, and after that a lot more financiers have wanted to invest their cash and take the danger and utilize the money to create the view it now jobs that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was mentioned


The regional facility part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and given that then that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes an excellent while to work up a project and after that to obtain the financiers accepted. And they do not desire their cash streaming through up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already discouraging the development of jobs.

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I wish this post to clarify that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It just is a reality that the majority of the regional facilities that are merging investments have actually set those in places of high unemployment or in rural locations where half- million-dollar financial investments are permitted, which makes sense.