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The program is put in a very weird and non-helpful bureaucratic place for the excitement of international investment in the United States. We are giving away too much for as well tiny of an investment.


The local centers, with their half-million systems, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to be regarding creating company entities, not easy investments. It needs to be about creating actual jobs, not specify computations about the indirect production of jobs, which is now part of the legislation.


Possibly that is one of the reasons that it has failed year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of intermediaries, both public and personal. The program has even more than its share of rumors, which I will get involved in later on if anybody is interested.


This is a company that enjoys to state yes to candidates, yet as the table in my statement reveals, USCIS officers have far more problem with EB-5 applications than others. I assume that is something that no one has actually really discussed a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and for good reason

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Seventh, in this program visas go to people who can not obtain them otherwise and to people whose planned financial investment is in fact much less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Let me expand on among my monitorings.


My quote based on the investors' permit applications filed 2 years after the first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not give the kind of data that we could make use of on this.


So for every single $100 of raised foreign investment that year, the EB program contributed one cent. Under a a lot more wobbly statistical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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




Divine served as Chief Counsel of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and then Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive practice. He was chosen, as I comprehend, vice president of the Organization to Invest in USA, the nationwide industry organization 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 most, if all 10,000 ports were used, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, however it is growing and obtaining toward that. Especially as USCIS, the company that supervises the program, has been making the rules more clear and the processes extra logical and clear for individuals who are organizing financial investments and for the capitalists who are spending, more individuals have actually wanted and able to place effort and cash into the procedure to find great projects and develop them, and after that more financiers have actually agreed to invest their money and take the threat and make use of the cash to produce the tasks that is the factor of the program.

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These tasks do not wait around for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they are all set to reject applications that are not certifying. And they do so, as was pointed out


The regional facility component of the program is not. It is component of an appropriations bill that was established in 1992, and ever since that program has been expanded five 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 expiration in September.


The process takes an excellent while to develop a job and after that to get the financiers accepted. And they do not desire their cash flowing with till they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of jobs.

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I would such as to clear up that the Regional Center Program is not the 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 belongs to the code. It simply is a fact that a lot of the local centers that are merging financial investments have actually set those in areas of click here high unemployment or in rural areas where fifty percent- million-dollar financial investments are enabled, and that makes good sense.