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The program is put in a really weird and non-helpful administrative place for the stimulation of worldwide investment in the United States. We are providing away too much for also tiny of a financial investment.


The regional facilities, with their half-million systems, basically damaged the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should have to do with developing service entities, not easy financial investments. It should be concerning producing actual tasks, not elaborate computations concerning the indirect development of jobs, which is currently part of the regulation.


Possibly that is one of the reasons that it has fallen short time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter into later if any person is interested.


This is a company that enjoys to state yes to candidates, but as the table in my testimony reveals, USCIS officers have much more problem with EB-5 applications than others. I believe that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently factor

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Seventh, in this program visas go to individuals that might not obtain them differently and to individuals whose organized investment is really 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 observations.


My quote based upon the investors' permit applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not provide the sort of information that we could utilize on this.


So for every single $100 of increased foreign investment that year, the EB program added one dime. Under a much extra wobbly statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that official site the level of investment in the just-concluded year was concerning $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 immigration method team.




Divine served as Principal Advice of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has actually functioned extensively with the EB-5 program secretive method. He was elected, as I understand, vice president of the Organization to Spend in USA, the national industry organization of regional.


Divine, we are happy to have you right 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, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, click now if all 10,000 slots were utilized, it would be 1 percent of the migration every year to the USA. It is not near that yet, however it is growing and obtaining toward that. Especially as USCIS, the agency that oversees the program, has been making the regulations clearer and the procedures extra rational and clear for individuals that are organizing financial investments and for the investors who are investing, even more people have actually been willing and able to put effort and money right into the process to discover great tasks and establish them, and afterwards extra financiers have wanted to invest their cash and take the threat and use the cash to develop the work that is the point of the program.

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These jobs do not wait about permanently, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, in fact, they are all set to deny applications that are not qualifying. And they do so, as was mentioned


The regional facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to work up a task and then to get the capitalists authorized. And they do not want their cash flowing with until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the development of projects.

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I want to clarify that important link the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 law that is part of the code. It simply is a reality that the majority of the local facilities that are pooling financial investments have established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes sense.