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The program is positioned in a very weird and non-helpful bureaucratic area for the stimulation of global investment in the United States. We are offering away too much for as well tiny of an investment.


The local facilities, with their half-million systems, basically damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must have to do with developing organization entities, not passive financial investments. It must be about developing real jobs, not elaborate calculations regarding the indirect creation of tasks, which is currently part of the legislation.


Possibly that is among the reasons that it has stopped working every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also loaded with intermediaries, both public and personal. The program has more than its share of scandals, which I will enter later on if any person is interested.


This is an agency that loves to claim yes to candidates, however as the table in my statement shows, USCIS police officers have far more trouble with EB-5 applications than others. I assume that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and forever reason

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Seventh, in this program visas go to people that might not obtain them otherwise and to individuals whose planned financial investment is actually much less, according to the Federal Reserve, than the ordinary mean web well worth of all American households in 2007. Let me expand on among my monitorings.


My price quote based upon the capitalists' permit applications filed 2 years after the first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not supply the type of information that we might use on this.


So for each $100 of raised international investment that year, the EB program contributed one dime. Under a much a lot more wobbly statistical base, the first applications of would-be immigrant investors, USCIS is informing 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 listening to me. Chairman Leahy. He is the head of the company's immigration practice group.




Divine acted as Chief Advise of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has actually functioned extensively with the EB-5 program in private practice. He was chosen, as I recognize, vice head of state of the Organization to Spend in USA, the nationwide market association of regional.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Especially as USCIS, the firm that supervises the program, has been making the regulations more clear and the procedures a lot more reasonable and clear for individuals that are organizing investments and for the capitalists read more that are investing, even more individuals have been willing and able to put initiative and money right into the procedure to find excellent projects and establish them, and after that a lot more investors have agreed to spend their cash and take the risk and use the money to develop the jobs that is the factor of the program.

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These projects do not linger forever, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, actually, they are prepared to deny applications that are not qualifying. And they do so, as was discussed


The local center part of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has actually been extended 5 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 an excellent while to work up a project and after that to obtain the capitalists authorized. And they do not desire their money flowing through till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the advancement of tasks.

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I wish to clarify that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 legislation that is component of the code. It just is a truth that the majority of the regional centers that are merging financial investments have actually set those in places of high unemployment or in country locations where half- million-dollar financial investments are allowed, and that makes feeling.