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The program is positioned in an extremely odd and non-helpful governmental area for the stimulation of international investment in the United States. We are providing away too much for too tiny of an investment.


The local facilities, with their half-million plans, essentially undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must have to do with developing service entities, not passive investments. It should be about producing actual work, not elaborate calculations about the indirect creation of work, which is now part of the regulations.


Perhaps that is one of the reasons that it has fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of intermediaries, both public and private. The program has even more than its share of detractions, which I will certainly enter into later if anyone is interested.


This is a company that likes to say yes to candidates, yet as the table in my statement reveals, USCIS officers have far more problem with EB-5 applications than others. I think that is something that nobody has actually truly spoken around much. EB5 Regional Center Program. There are high rates of inner denials in this program and completely reason

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Seventh, in this program visas go to individuals who can not obtain them otherwise and to people whose planned financial investment is actually much less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Allow me broaden on among my monitorings.


My quote based on the capitalists' permit applications filed 2 years after the first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not offer the sort of data that we could make use of on this.


So for every $100 of boosted foreign investment that year, the EB program contributed one cent. Under a far more unsteady analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year was regarding $1.2 billion. Let 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 team.




Divine acted as Chief Advise of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. He has actually functioned thoroughly with the EB-5 program in exclusive practice. He was elected, as I comprehend, vice head of state of the Organization to Spend in United States, the nationwide industry association of regional centers.


Divine, we are thrilled to have you below. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, however it is growing and getting towards that. Especially as USCIS, the company that looks after the program, has actually been making the policies more clear and the procedures much more sensible and clear for the individuals who are organizing financial investments and for the financiers who are spending, more individuals have actually wanted and able to put effort and cash into the process to discover excellent jobs and develop them, and after that extra financiers have agreed to invest their money and take the threat and utilize the cash to create the work that is the point of the program.

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These projects do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, as a matter of fact, they are ready to refute applications that are not certifying. And they do so, as was mentioned


The regional facility part of the program is not. It is part of an appropriations expense that was enacted in 1992, and ever since that program has been prolonged five times for more info 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to work up a task and after that to obtain the investors approved. And they do not desire their cash streaming through till they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of jobs.

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I would love 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 becomes part of the code. It simply is a fact that a lot of the local centers that are merging investments have set those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, which makes sense.