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The program is positioned in a very odd and non-helpful administrative area for the stimulation of worldwide financial investment in the United States. We are providing away too much for as well tiny of a financial investment.


The regional facilities, with their half-million plans, essentially damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to be about developing service entities, not passive investments. It should be concerning producing real jobs, not specify calculations concerning the indirect development of work, which is currently component of the regulations.


Perhaps that is just one of the reasons why it has fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also full of intermediaries, both public and personal. The program has more than its share of rumors, which I will obtain right into later on if anybody is interested.


This is a company that loves to state yes to applicants, yet as the table in my testimony shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for good factor

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Seventh, in this program visas most likely to individuals that could not get them any other method and to individuals whose scheduled financial investment is actually less, according to the Federal Get, than the average mean total assets of all American households in 2007. Let me broaden on one of my monitorings.


My price quote based upon the investors' copyright applications submitted 2 years after the initial financial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not supply the type of data that we could utilize on this.


So for each $100 of boosted foreign financial investment that year, the EB program contributed one penny. 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 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 of the firm's migration practice group.




Divine functioned as Chief Advise of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Association to Spend in U.S.A., the nationwide market organization of regional.


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 utilized, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is growing and getting towards that. Especially as USCIS, the agency that manages the program, has been making the rules more clear and the procedures a lot more rational and clear for individuals who are organizing investments and for the financiers who are investing, even more people have wanted and able to put initiative and cash into the process to find good tasks and develop them, and after that more financiers have actually agreed to spend their cash and take the danger and make use of the cash to create the tasks that is the factor of the program.

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These tasks do not wait around for life, and USCIS comprehends that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, actually, they prepare to refute applications that are not certifying. And they do so, more info as was pointed out


The local center component of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has 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 date of expiration in September.


The procedure takes a good while to function up a task and afterwards to obtain the financiers approved. And they do not desire their cash streaming through up until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the advancement of projects.

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I want to clarify that the Regional Center Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 law that is component of the code. It just is a truth that most of the regional centers that are merging investments have set those instead of high unemployment or in country locations where half- million-dollar financial investments are enabled, and that makes sense.