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The program is placed in a really weird and non-helpful bureaucratic place for the stimulation of international investment in the United States. We are giving away as well much for as well little of an investment.

The local centers, with their half-million systems, basically undercut the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must have to do with developing service entities, not easy financial investments. It ought to have to do with creating real work, not elaborate calculations regarding the indirect development of jobs, which is now part of the legislation.


Maybe that is just one of the reasons it has failed every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also full of middlemen, both public and exclusive. The program has even more than its share of scandals, which I will get into later on if any person is interested.


This is an agency that loves to say yes to applicants, yet as the table in my statement shows, USCIS officers have much more trouble with EB-5 applications than others. I believe that is something that nobody has really discussed much. EB5 Regional Center Program. There are high prices of interior rejections in this program and for great factor

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Seventh, in this program visas go to people who could not get them otherwise and to individuals whose planned financial investment is in fact much less, according to the Federal Reserve, than the typical mean web well worth of all American households in 2007. Allow me expand on among my monitorings.


My estimate based on the investors' permit applications submitted 2 years after the initial financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not give the sort of information that we can utilize on this.


So for every single $100 of raised foreign investment that year, the EB program contributed one cent. Under a a lot more unsteady analytical base, the initial applications of would-be immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's migration practice team.

Divine offered as Chief Advice of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Supervisor. He has functioned extensively with the EB-5 program in exclusive practice. He was chosen, as I comprehend, vice president of the Organization to Invest in USA, the national market organization of regional.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (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 USA. It is not near that yet, yet it is growing and obtaining toward that. Particularly as USCIS, the agency that looks after the program, has been making the policies more clear and the procedures much more sensible and clear for the people who are organizing financial investments and for the investors that are spending, more people have wanted and able to put effort and money into the procedure to locate great projects and develop them, and afterwards a lot more financiers have wanted check here to invest their cash and take the danger and make use of the cash to develop the jobs that is the factor of the program.

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These projects do not linger forever, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, actually, they prepare to refute applications that are not certifying. And they do so, as was mentioned

The regional facility component of the program is not. It is component of an appropriations expense that was passed in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiry in September.


The process takes a good while to develop a task and then to obtain the investors authorized. And they do not desire their cash flowing via until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently dissuading the development of jobs.

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I want to clarify that the Regional Facility Program is not the very same as the half-million-dollar thing. 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 truth that most of the local facilities that are pooling financial investments have actually established those in places of high unemployment or in country areas where half- million-dollar financial investments are allowed, and that makes feeling.