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The program is put in a really odd and non-helpful bureaucratic area for the excitement of international financial investment in the United States. We are offering away as well much for too small of an investment.


The regional facilities, with their half-million schemes, basically undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to have to do with producing organization entities, not easy financial investments. It must have to do with producing actual work, not specify calculations about the indirect development of tasks, which is now part of the regulations.


Probably that is among the reasons it has fallen short time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with middlemen, both public and private. The program has more than its share of scandals, which I will certainly get involved in later if anybody is interested.


This is a company that loves to say yes to applicants, but as the table in my testimony shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually discussed a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever factor

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Seventh, in this program visas go to individuals who can not get them otherwise and to people whose organized financial investment is actually much less, according to the Federal Reserve, than the average mean web well worth of all American family members in 2007. Allow me increase on one of my observations.


My estimate based upon the capitalists' copyright applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not provide the kind of data that we could utilize on this.


For every $100 of boosted foreign financial investment that year, the EB program contributed one penny. Under a much extra shaky statistical base, the preliminary applications of potential immigrant capitalists, USCIS is telling journalists that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the company's migration practice team.




Divine functioned as Principal Advice of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and then Acting Deputy Director. He has actually functioned extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice head of state of the Organization to Spend in USA, the national industry association of local.


DECLARATION OF ROBERT C. DIVINE, LAWYER, 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 a lot of, if all 10,000 slots were used, it would be 1 percent of the migration every year to the USA. It is not near that yet, but it is growing and getting toward that. Particularly as USCIS, the firm that manages the program, has actually been making the policies more clear and the processes extra sensible and clear for the individuals who are arranging investments and for the investors who are spending, even more people have actually wanted and able to place effort and cash right into the process to find great projects and establish them, and after that extra financiers have wanted to spend their money and take the threat and use the cash to create the jobs that is the factor of the program.

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These projects do not wait about forever, and USCIS understands that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, in fact, they are ready to reject applications that are not qualifying. And they do so, as was stated


The regional center component of the program is not. It is part of an appropriations expense that was established in 1992, and given that then that program has been prolonged five times for 19 years. It is time for it to be permanent, and it needs 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 obtain the investors accepted. And they do not desire their money flowing via till they have been accepted. And the specter of the expiry of this Regional Center Program in September is already preventing the development of tasks.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 law that belongs to the code. It just is a truth that a check here lot of the local centers that are pooling investments have established those in areas of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, which makes feeling.