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The program is put in an extremely weird and non-helpful bureaucratic location for the stimulation of worldwide investment in the United States. We are giving away too much for also small of an investment.


The local centers, with their half-million systems, basically damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, must have to do with creating service entities, not passive financial investments. It should have to do with creating real work, not clarify computations regarding the indirect creation of tasks, which is now part of the regulations.


Maybe that is just one of the factors why it has fallen short year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too filled up with intermediaries, both public and personal. The program has more than its share of detractions, which I will get involved in later if any person is interested.


This is an agency that loves to say yes to applicants, however as the table in my testimony shows, USCIS officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals who can not obtain them any kind of various other way and to people whose scheduled investment is actually less, according to the Federal Book, than the typical mean internet worth of all American households in 2007. Let me expand on among my monitorings.


My quote based on the capitalists' copyright applications filed 2 years after the very first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not offer the kind of data that we can utilize on this.


So for every single $100 of raised international investment that year, the EB program contributed one penny. Under a far more shaky statistical base, the preliminary applications of would-be immigrant investors, USCIS is informing reporters that the degree of financial investment in the just-concluded year was concerning $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 firm's immigration method group.




Divine worked as Chief Guidance of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program in exclusive technique. He was elected, as I understand, vice head of state of the Organization to Buy USA, the national industry association of regional facilities.


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


At most, if all 10,000 slots were used, it would be 1 percent of the migration each year to the United States. It is not near that yet, however it is growing and getting toward that. Especially as USCIS, the company that supervises the program, has actually been making the policies more clear and the procedures extra logical and clear for the individuals who are arranging investments and for the financiers that are investing, even more people have actually been prepared and able to put initiative and money right into the procedure to find great jobs and establish them, and afterwards a lot more investors have agreed to spend their money and take the risk and utilize the money to create the work that is the factor of the program.

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These jobs do not wait around for life, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, as a matter of fact, they are prepared to deny applications that are not qualifying. And they do so, as was pointed out


The regional center component of the program is not. It is part of an appropriations bill that was established in 1992, and given that then that program has actually been prolonged 5 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 process takes a great while to develop a job and after that to get the capitalists approved. And they do not desire their cash streaming with up until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the growth 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 point. The idea of half a million or a million is a function of the normal EB-5 regulation that becomes part of the code. It just is a truth that most of the regional facilities that are merging investments have actually established those in areas of high unemployment or in rural locations where half- million-dollar investments are permitted, which makes feeling.