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The program is placed in an extremely weird and non-helpful governmental area for the stimulation of international financial investment in the United States. We are offering away also much for as well small of an investment.

The local facilities, with their half-million systems, basically damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, should have to do with developing organization entities, not passive financial investments. It ought to have to do with developing actual work, not specify estimations about the indirect production of work, which is currently part of the regulation.

Possibly that is just one of the reasons it has actually failed year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too filled with intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will obtain right into later on if anyone is interested.

This is a company that likes to state yes to applicants, yet as the table in my testimony reveals, USCIS officers have a lot more problem with EB-5 applications than others. I think that is something that no one has actually actually talked about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever factor

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Seventh, in this program visas go to individuals who can not obtain them differently and to people whose scheduled investment is really less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Let me broaden on one of my monitorings.

My estimate based on the financiers' permit applications submitted 2 years after the very first investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not provide the sort of information that we can use on this.

So for every $100 of enhanced international investment that year, the EB program added one penny. Under a a lot more wobbly analytical base, the preliminary applications of prospective immigrant capitalists, 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 method team.


Divine acted as Chief Advice of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has actually functioned thoroughly with the EB-5 program in private practice. He was elected, as I recognize, vice president of the Organization to Invest in U.S.A., the nationwide industry organization of regional.

STATEMENT OF ROBERT C. DIVINE, LAWYER, 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 ports were made use of, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, however it is expanding and obtaining toward that. Especially as USCIS, the agency that looks after the program, has been making the guidelines EB5 Regional Center Program clearer and the processes extra sensible and clear for the individuals who are organizing financial investments and for the capitalists who are investing, more people have agreed and able to place initiative and cash into the procedure to find excellent projects and create them, and after that extra financiers have agreed to spend their cash and take the danger and make use of the cash to create the jobs that is the point of the program.

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These jobs do not linger for life, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they are ready to refute applications that are not certifying. And they do so, as was mentioned

The regional facility component of the program is not. It becomes part of an appropriations expense that was passed in 1992, and considering that then that program has actually been extended 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 day of expiration in September.

The process takes an excellent while to function up a job and afterwards to get the financiers authorized. And they do not want their money moving with until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already preventing the development of projects.

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I would like to make clear that the Regional Facility Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It simply is a fact that a lot of the regional centers that are pooling investments have set those in places of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, which makes good sense.

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