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The program is placed in an extremely strange and non-helpful bureaucratic location for the stimulation of international investment in the United States. We are providing away also much for also small of a financial investment.


The regional facilities, with their half-million systems, basically undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, ought to have to do with developing business entities, not passive investments. It must be concerning developing genuine jobs, not clarify calculations regarding the indirect development of tasks, which is currently part of the regulations.


Possibly that is among the reasons why it has stopped working time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will enter into later on if anyone is interested.


This is an agency that enjoys to claim yes to applicants, however as the table in my testimony reveals, USCIS policemans have much a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely reason

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Seventh, in this program visas go to individuals that can not obtain them any other method and to individuals whose planned investment is actually less, according to the Federal Reserve, than the average mean internet worth of all American families in 2007. Let me increase on among my observations.


My estimate based on the financiers' permit applications filed 2 years after the initial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not give the sort of information that we might utilize on this.


So for each $100 of raised foreign investment that year, the EB program added one cent. Under a much extra unsteady analytical base, the initial applications of potential immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's migration practice group.




Divine served as Principal Advice of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Director. He has actually functioned extensively with the EB-5 program in private method. He was elected, as I comprehend, vice head of state of the Organization to Spend in United States, the nationwide market organization of local facilities.


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


At many, if all 10,000 slots were made use of, it would be 1 percent of the more info immigration every year to the USA. It is not near that yet, but it is growing and getting toward that. Particularly as USCIS, the company that manages the program, has actually been making the rules more clear and the procedures a lot more logical and clear for individuals who are arranging investments and for the financiers that are spending, even more people have been ready and able to place effort and cash right into the procedure to find great tasks and develop them, and afterwards much more financiers have actually been willing to spend their cash and take the danger and utilize the cash to develop 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 the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, actually, they prepare to reject applications that are not certifying. And they do so, as was discussed


The regional center part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiration in September.


The process takes a good while to develop a job and after that to get the financiers authorized. And they do not want their money streaming with up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already inhibiting the advancement of projects.

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I would love to clear up that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It just is a fact that most of the regional centers that are merging financial investments have set those instead of high unemployment or in country areas where half- million-dollar investments are enabled, and that makes good sense.