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The program is positioned in a really strange and non-helpful bureaucratic location for the excitement of worldwide financial investment in the United States. Second, its range is all wrong. We are providing away excessive for as well small of a financial investment. Better, increasing financial backing fifty percent a million dollars a tranche is, to claim the least, inefficient.


The regional facilities, with their half-million schemes, essentially undercut the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should be concerning creating organization entities, not easy financial investments. It should have to do with creating real jobs, not elaborate computations about the indirect development of tasks, which is now part of the legislation.


Possibly that is among the reasons that it has actually stopped working year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also filled up with middlemen, both public and private. The program has greater than its share of detractions, which I will get involved in later on if anyone is interested.


This is a company that enjoys to state yes to applicants, however as the table in my testimony shows, USCIS officers have a lot more problem with EB-5 applications than others. I think that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever reason

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Seventh, in this program visas most likely to people that could not get them differently and to individuals 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 broaden on among my observations.


My price quote based on the investors' environment-friendly card applications filed 2 years after the first investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not provide the sort of data that we can use on this.


So for every single $100 of enhanced international investment that year, the EB program contributed one cent. Under a a lot more shaky statistical base, the first applications of prospective immigrant investors, USCIS is telling journalists that the degree 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 firm's migration method team.




Divine acted as Principal Guidance of the United States Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive technique. He was elected, as I understand, vice president of the Association to Spend in USA, the nationwide sector organization of regional.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 slots were utilized, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is growing and getting toward that. Particularly as USCIS, the company that looks after the program, has actually been making the regulations more clear and the processes more sensible and clear for individuals who are arranging investments and for the investors that are spending, more individuals have agreed and able to put initiative and money into the process to discover great projects and establish them, and after that extra capitalists have actually wanted to invest their cash and take the threat and utilize the money to create the work that is the point of the program.

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These projects do not wait around for life, and USCIS comprehends that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, actually, they prepare to deny applications that are not certifying. And they do so, as was mentioned


The regional center part of more info the program is not. It belongs to an appropriations costs that was established in 1992, and since then that program has 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 date of expiration in September.


The process takes a great while to develop a job and then to get the capitalists approved. And they do not want their money streaming with until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the growth of jobs.

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I would such as to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 regulation that is part of the code. It simply is a truth that many of the regional facilities that are merging financial investments have established those instead of high joblessness or in country areas where fifty percent- million-dollar investments are permitted, and that makes sense.