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First, the program is placed in an extremely weird and non-helpful bureaucratic area for the excitement of worldwide financial investment in the United States. Second, its scale is all wrong. We are offering away way too much for as well tiny of an investment. Further, increasing endeavor resources half a million dollars a tranche is, to state the least, ineffective.


The local facilities, with their half-million schemes, essentially undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to be concerning creating business entities, not passive investments. It needs to have to do with creating actual tasks, not elaborate calculations concerning the indirect development of jobs, which is now component of the regulation.


Maybe that is among the reasons it has failed year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well filled up with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will enter into later if any person is interested.


This is a company that enjoys to claim yes to applicants, however as the table in my testimony shows, USCIS officers have far more difficulty with EB-5 applications than others. I assume that is something that nobody has truly discussed much. EB5 Regional Center Program. There are high rates of inner rejections in this program and for good reason

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Seventh, in this program visas go to people who could not obtain them differently and to individuals whose planned investment is really less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Allow me increase on one of my observations.


My price quote based upon the financiers' permit applications submitted 2 years after the first financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not offer the type of data that we might utilize on this.


So for every single $100 of boosted international financial investment that year, the EB program added one cent. Under a far more unsteady statistical base, the first applications of potential immigrant financiers, USCIS is telling reporters that the degree of financial 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 firm's migration technique team.




Divine worked as Principal Advice of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Performing Replacement Director. He has worked extensively with the EB-5 program secretive practice. He was chosen, as I recognize, vice president of the Organization to Spend in United States, the national sector organization of regional.


Divine, we are delighted to have you right here. Please go ahead, sir. go now STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, however it is growing and getting towards that. Particularly as USCIS, the firm that manages the program, has actually been making the rules clearer and the procedures a lot more sensible and clear for individuals who are arranging investments and for the investors who are investing, even more people have agreed and able to place initiative and cash into the process to locate good jobs and create them, and after that a lot more financiers have actually wanted to invest their money and take the danger and use the cash to develop the jobs that is the factor of the program.

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These tasks do not wait Full Report around for life, and USCIS comprehends that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, in fact, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The local facility part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes a good while to function up a task this hyperlink and then to get the investors approved. And they do not desire their money moving via till they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already discouraging the growth of projects.

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I would certainly like to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It simply is a truth that the majority of the local facilities that are merging investments have actually established those instead of high unemployment or in country locations where fifty percent- million-dollar investments are allowed, and that makes feeling.