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The program is placed in a very strange and non-helpful bureaucratic location for the excitement of worldwide investment in the United States. We are offering away too much for also small of a financial investment.


The regional centers, with their half-million plans, basically undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should have to do with developing service entities, not passive investments. It needs to be regarding creating real jobs, not elaborate calculations about the indirect creation of jobs, which is now part of the regulations.


Perhaps that is among the reasons it has actually failed year after year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also full of intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will enter into later on if anybody is interested.


This is an agency that enjoys to say yes to candidates, however as the table in my testimony reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that nobody has really discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently reason

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Seventh, in this program visas go to individuals that could not get them differently and to people whose organized investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me broaden on one of my monitorings.


My estimate based on the capitalists' permit applications submitted 2 years after the first investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not provide the kind of data that we can make use of on this.


So for every single $100 of boosted foreign investment that year, the EB program added one cent. Under a a lot more unsteady statistical base, the initial applications of would-be immigrant capitalists, USCIS is informing reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Allow 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 acted as Chief Guidance of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive practice. He was elected, as I understand, vice president of the Organization to Spend in USA, the nationwide market association of local facilities.


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


At the majority of, if all 10,000 ports were used, it would be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Particularly as USCIS, the company that manages the program, has been making the policies more clear and the procedures more sensible and clear for the people that are arranging investments and for the financiers that are spending, even more people have actually wanted and able to put effort and cash right into the procedure to locate excellent tasks and establish them, and after that extra capitalists have actually been ready to invest their money and take the threat and utilize the cash to create the jobs that is the factor of the program.

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These projects do not linger for life, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, in truth, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The regional facility component of the program is not. It is part of an appropriations get more info expense that was enacted in 1992, and considering that then that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes a good while to work up a task and then to get the capitalists approved. And they do not desire their cash flowing through up until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is currently discouraging the growth of tasks.

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I want 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 regular EB-5 law that is part of the code. It simply is a reality that the majority of the regional facilities that are merging investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes sense.