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The program is placed in a really strange and non-helpful bureaucratic area for the stimulation of worldwide financial investment in the United States. Second, its range is all wrong. We are handing out as well much for also small of a financial investment. Additionally, increasing financial backing half a million dollars a tranche is, to say the least, ineffective.


The local facilities, with their half-million plans, basically damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must be concerning producing business entities, not easy investments. It should be regarding producing genuine tasks, not elaborate calculations regarding the indirect production of work, which is currently component of the regulation.


Maybe that is just one of the reasons it has failed time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too full of middlemen, both public and private. The program has even more than its share of rumors, which I will certainly get involved in later on if anyone is interested.


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

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Seventh, in this program visas go to individuals that can not get them any kind of various other means and to individuals whose organized investment is really much less, according to the Federal Get, than the ordinary mean internet well worth of all American households in 2007. Let me increase on one of my observations.


My estimate based upon the capitalists' eco-friendly card applications submitted 2 years after the initial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not supply the type of information that we could utilize on this.


So for each $100 of increased foreign investment that year, the EB program added one cent. Under a much extra shaky analytical base, the preliminary applications of potential immigrant capitalists, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head go of the firm's migration method group.




Divine worked as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has functioned thoroughly 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 sector association of regional facilities.


Divine, we are delighted to have you right here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is growing and getting toward that. Specifically as USCIS, the firm that supervises the program, has actually been making the rules more clear and the processes a lot more sensible and clear for the individuals who are arranging financial investments and for the capitalists that are spending, more people have wanted and able to place effort and money into the procedure to discover good tasks and establish them, and then more financiers have actually agreed to invest their money and take the threat and make linked here use of the money to produce the jobs that is the factor of the program.

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These tasks do not wait about for life, and USCIS comprehends that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as find out was discussed


The regional facility part of the program is not. It is component of an appropriations expense that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes an excellent while to work up a job and then to get the financiers accepted. And they do not want their cash flowing through till they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of tasks.

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I would love to clear up that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 regulation that is part of the code. It just is a fact that a lot of the regional facilities that are merging financial investments have actually set those instead of high unemployment or in rural locations where fifty percent- million-dollar investments are enabled, which makes good sense.