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First, the program is put in a really weird and non-helpful administrative place for the excitement of international financial investment in the USA. Second, its scale is all incorrect. We are distributing also much for also small of a financial investment. Further, increasing endeavor capital half a million dollars a tranche is, to state the least, inefficient.


The regional facilities, with their half-million schemes, basically undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to have to do with producing organization entities, not passive financial investments. It ought to have to do with producing genuine jobs, not elaborate calculations regarding the indirect development of tasks, which is now component of the legislation.


Probably that is one of the reasons that it has fallen short every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also filled with intermediaries, both public and exclusive. The program has more than its share of rumors, which I will enter later if any person is interested.


This is an agency that likes to state yes to applicants, yet as the table in my testimony reveals, USCIS officers have much extra difficulty with EB-5 applications than others. I think that is something that no one has truly discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever factor

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Seventh, in this program visas go to people that can not obtain them any kind of various other method and to individuals whose organized investment is actually much less, according to the Federal Get, than the ordinary mean internet well worth of all American family members in 2007. Allow me increase on among my monitorings.


My estimate based on the investors' environment-friendly card 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 about $191 million confirmed-- that is my estimate. USCIS does not supply the type of data that we can utilize on this.


For every $100 of increased international financial investment that year, the EB program contributed one dime. Under a far more unsteady analytical base, the first applications of potential immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year was concerning $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 immigration method team.




Divine acted as Principal Advise of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Replacement Supervisor. He has functioned extensively site here with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Association to Spend in U.S.A., the nationwide sector association of local.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and obtaining toward that. Especially as USCIS, the firm that supervises the program, has been making the regulations more clear and the processes much more logical and clear for individuals that are arranging financial investments and for the investors that are spending, even more people have actually been prepared and able to place effort and money right into the procedure to find great tasks and develop them, and after that extra investors have agreed to invest their money and take the threat and make use of the cash to develop the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they are Our site all set to reject applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations costs that was enacted in 1992, and because then that program has actually been extended 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiry straight from the source in September.


The procedure takes a good while to develop a task and afterwards to obtain the financiers accepted. And they do not want their money moving through till they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the advancement of tasks.

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I wish to make clear 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 routine EB-5 regulation that belongs to the code. It just is a truth that the majority of the local facilities that are pooling investments have actually established those instead of high joblessness or in country areas where half- million-dollar investments are permitted, and that makes good sense.