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The program is placed in a really strange and non-helpful bureaucratic area for the stimulation of global investment in the United States. We are giving away too much for also small of a financial investment.


The regional facilities, with their half-million systems, basically undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to be regarding producing organization entities, not passive financial investments. It ought to be regarding developing genuine work, not elaborate computations regarding the indirect production of jobs, which is now component of the regulations.


Perhaps that is one of the reasons it has fallen short every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with middlemen, both public and personal. The program has more than its share of rumors, which I will obtain right into later if anybody is interested.


This is a company that enjoys to claim yes to applicants, yet as the table in my testimony reveals, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that no one has truly chatted around much. 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 most likely to people who might not get them any kind of other method and to people whose planned financial investment is in fact much less, according to the Federal Get, than the average mean total assets of all American households in 2007. Allow me increase on among my observations.


My estimate based on the capitalists' environment-friendly card 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 about $191 million validated-- that is my quote. USCIS does not give the kind of data that we might utilize on this.


So for each $100 of increased international financial investment that year, the EB program added one dime. Under a a lot more wobbly analytical base, the initial applications of would-be immigrant financiers, USCIS is telling you could try these out reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's immigration technique team.




Divine worked as Principal Counsel of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Director. He has functioned extensively with the EB-5 program secretive practice. He was chosen, as I comprehend, vice head of state of the Organization to Buy United States, the national industry organization of local facilities.


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


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, but it is growing and getting toward that. Especially as USCIS, the company that supervises the program, has actually been making the regulations clearer and the procedures more sensible and clear for the individuals that are organizing financial investments and for the investors that are investing, even more individuals have actually been willing and able to place initiative and cash into the process to locate excellent tasks and develop them, and afterwards extra investors have been willing to spend their cash and take the risk and make use of the cash to produce the work that is the factor of the program.

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These jobs do not linger for life, and USCIS recognizes that and are attempting to content speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, as a matter of fact, find here they prepare to refute applications that are not qualifying. And they do so, as was discussed


The regional center component of the program is not. It belongs to an appropriations expense that was established in 1992, and considering that then that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes an excellent while to work up a project and after that to obtain the investors accepted. And they do not want their money moving with up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already discouraging the advancement of jobs.

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I want to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 legislation that belongs to the code. It simply is a truth that many of the local facilities that are merging investments have established those in locations of high unemployment or in backwoods where half- million-dollar investments are enabled, which makes feeling.