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The program is put in a really strange and non-helpful bureaucratic area for the stimulation of global investment in the United States. We are providing away also much for too tiny of an investment.


The regional facilities, with their half-million plans, basically undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must be regarding creating company entities, not easy financial investments. It ought to be about developing genuine work, not elaborate computations about the indirect production of work, which is currently part of the regulations.


Perhaps that is one of the factors why it has actually stopped working time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will enter into later on if any person is interested.


This is a firm that likes to claim yes to applicants, however as the table in my testimony reveals, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that nobody has really spoken around much. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals that could not get them otherwise and to individuals whose scheduled financial investment is really less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Allow me increase on one of my monitorings.


My estimate based on the financiers' permit applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the kind of information that we might use on this.


So for every $100 of boosted international investment that year, the EB program contributed one penny. Under a much a lot more shaky analytical base, the first applications of prospective immigrant investors, USCIS is informing journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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




Divine functioned as Principal Advise of the United States look at this now Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Performing Deputy Director. He has actually worked extensively with the EB-5 program in personal technique. He was elected, as I understand, vice head of state of the Association to Invest in United States, the national market organization of regional centers.


Divine, we are happy to have you below. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were used, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is growing and getting toward that. Especially as USCIS, the company that manages the program, has actually been making the policies clearer and the processes much more rational and clear for individuals who are organizing financial investments and for the financiers that are spending, even more individuals have been eager and able to put initiative and cash right into the procedure to discover great projects and establish them, and after that more capitalists have actually agreed to spend their cash and take the danger and utilize the cash to create the jobs that is the point of the program.

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These projects do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, actually, they are all set helpful resources to reject applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It belongs to an appropriations bill that was passed in 1992, and given that Clicking Here then that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes a good while to develop a project and after that to get the financiers authorized. And they do not want their money streaming with up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently dissuading the development of projects.

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I want to make clear that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 legislation that is part of the code. It simply is a reality that the majority of the local centers that are merging financial investments have actually established those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are allowed, which makes good sense.