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The program is put in a really strange and non-helpful governmental area for the excitement of worldwide financial investment in the United States. We are providing away too much for too tiny of an investment.


The local centers, with their half-million schemes, essentially damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should have to do with developing organization entities, not easy investments. It must have to do with developing actual work, not clarify computations regarding the indirect production of work, which is now part of the regulations.


Possibly that is among the reasons it has actually failed time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with intermediaries, both public and exclusive. The program has more than its share of rumors, which I will enter into later if any person is interested.


This is a firm that enjoys to state yes to applicants, however as the table in my statement shows, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that nobody has actually actually discussed a lot. 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 people that can not get them differently and to people whose organized financial investment is actually much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Allow me expand on one of my observations.


My price quote based upon the investors' permit applications filed 2 years after the initial financial 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 price quote. USCIS does not offer the type of information that we can make use of on this.


For every $100 of boosted international investment that year, the EB program contributed one cent. Under a far more unsteady statistical base, the initial applications of potential immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's migration method team.




Divine functioned as Chief Advise of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Performing Director, and after that Performing Deputy Director. He has worked thoroughly with the EB-5 program in personal technique. He was chosen, as I recognize, vice president of the Association to Spend in USA, the national market association of regional.


DECLARATION 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.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, however it is expanding and obtaining toward that. Specifically as USCIS, the company that supervises the program, has been making the policies more clear and the procedures much more sensible and clear for individuals who are organizing financial investments and for the financiers that are spending, even more individuals have agreed and able to put initiative and money right into the procedure to discover great jobs and establish them, and afterwards more capitalists have actually agreed to spend their cash and take the risk and make use of the money to develop the tasks that is the factor of the program.

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These projects do here not linger for life, 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 examination, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It becomes part of an appropriations expense that was passed in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to develop a project and after that to get the investors accepted. And they do not desire their money streaming via until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of tasks.

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I wish to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 regulation that belongs to the code. It just is a fact that a lot of the local centers that are pooling investments have actually set those in locations of high joblessness or in rural locations where fifty percent- million-dollar investments are enabled, which makes good sense.