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


The local facilities, with their half-million systems, essentially undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must have to do with producing company entities, not passive investments. It must have to do with creating real jobs, not elaborate calculations concerning the indirect creation of work, which is currently component of the regulation.


Perhaps that is just one of the factors why it has actually fallen short year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of intermediaries, both public and exclusive. The program has more than its share of rumors, which I will enter into later on if anyone is interested.


This is an agency that loves to say yes to candidates, however as the table in my testimony shows, USCIS policemans have much a lot more problem with EB-5 applications than others. I think that is something that no one has actually really chatted about a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and for good factor

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Seventh, in this program visas go to people that can not obtain them otherwise and to people whose scheduled investment is actually less, according to the Federal Get, than the typical mean internet worth of all American households in 2007. Allow me expand on among my monitorings.


My estimate based upon the investors' permit applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not provide the type of data that we can use on this.


So for every $100 of raised international financial investment that year, the EB program added one penny. Under a a lot more wobbly statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling journalists that the degree 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 team.




Divine served as Chief Counsel of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program secretive method. He was elected, as I understand, vice president of see post the Organization to Invest in United States, the nationwide sector organization of local.


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


At the majority this link of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding and getting toward that. Specifically as USCIS, the agency that supervises the program, has been making the guidelines clearer and the processes more rational and clear for individuals that are organizing investments and for the capitalists who are spending, even more individuals have actually agreed and able to place effort and money right into the procedure to discover good projects and create them, and after that a lot more financiers have actually agreed to invest their cash and take the threat and make use of the cash to produce the jobs that is the factor of the program.

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These projects do not wait about forever, and USCIS recognizes that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, as useful reference a matter of fact, they are prepared to refute applications that are not qualifying. And they do so, as was stated


The regional facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, 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 task and after that to get the investors approved. And they do not desire their cash moving with up until they have been accepted. And the specter of the expiration of this Regional Center Program in September is already preventing the growth of projects.

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I would certainly such as to clarify that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 law that belongs to the code. It just is a reality that many of the regional centers that are merging investments have set those instead of high joblessness or in country areas where half- million-dollar financial investments are permitted, and that makes good sense.