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


The regional facilities, with their half-million plans, essentially undercut the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should have to do with developing service entities, not passive financial investments. It must be concerning developing genuine tasks, not clarify estimations concerning the indirect production of jobs, which is now component of the legislation.


Probably that is just one of the reasons why it has actually stopped working every year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and private. The program has more than its share of rumors, which I will obtain into later if any person is interested.


This is an agency that enjoys to say yes to candidates, however as the table in my testimony shows, USCIS policemans have a lot more problem with EB-5 applications than others. I believe that is something that nobody has really discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for excellent reason

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Seventh, in this program visas go to individuals that can not get them otherwise and to individuals whose scheduled financial investment is in fact less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Allow me increase on one of my observations.


My quote based on the investors' environment-friendly card applications submitted 2 years after the very first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not supply the kind of information that we could utilize on this.


For every $100 of raised international investment that year, the EB program contributed one penny. Under a far more shaky analytical base, the initial applications of potential immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the company's migration practice group.




Divine worked as Principal Advice of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program in exclusive technique. He was chosen, as I comprehend, vice president of the Organization to Invest in U.S.A., the national market association of local facilities.


DECLARATION 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. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 slots were used, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, yet it is expanding and getting toward that. Particularly as USCIS, the agency that looks after the program, has been making the rules clearer and the processes extra reasonable and clear for the individuals who are organizing financial investments and for the investors who are spending, even more people have actually wanted and able to put initiative and money into the procedure to locate excellent jobs and establish them, and after that a lot more capitalists here have wanted to spend their money and take the danger and use the cash to develop the jobs that is the point of the program.

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These projects do not wait around forever, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, in reality, 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 becomes part of an appropriations costs that was enacted in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to work up a task and then to obtain the capitalists authorized. And they do not desire their money moving through up until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently preventing the growth of projects.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 legislation that is component of the code. It just is a reality that a lot of the regional facilities that are merging financial investments have set those in areas of high unemployment or in backwoods where fifty percent- million-dollar investments are permitted, and that makes sense.