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


The local facilities, with their half-million schemes, basically damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, should have to do with producing company entities, not passive financial investments. It ought to have to do with developing real jobs, not specify computations concerning the indirect production of jobs, which is currently part of the regulation.


Maybe that is just one of the reasons why it has fallen short every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well full of middlemen, both public and exclusive. The program has more than its share of rumors, which I will obtain right into later if any person is interested.


This is an agency that likes to say yes to applicants, yet as the table in my statement reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for great factor

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Seventh, in this program visas most likely to individuals that could not get them any other way and to people whose planned investment is really much less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Let me increase on among my monitorings.


My estimate based on the financiers' eco-friendly card applications submitted 2 years after the very first financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not provide the kind of information that we can make use of on this.


For every $100 of increased international financial investment that year, the EB program added one cent. Under a a lot more wobbly statistical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year was regarding $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 firm's immigration technique group.




Divine offered as Principal Advise of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Director, and then Performing Replacement Supervisor. He has worked extensively with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Association to Purchase USA, the nationwide industry organization of regional centers.


Divine, we are delighted to have you below. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were utilized, it would be 1 percent of the migration every year to the USA. It is not near that yet, yet site link it is growing and obtaining toward that. Particularly as USCIS, the firm that manages the program, has been making the policies clearer and the procedures much more logical and clear for individuals who are organizing investments and for the investors that are spending, more people have actually been prepared and able to place initiative and cash into the process to discover great projects and establish them, and after that more investors have agreed to spend their cash and take the risk and utilize the cash to develop the jobs that is the factor of the program.

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These projects do not linger forever, and USCIS comprehends that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, as a matter of fact, they are prepared to deny applications that are not certifying. And they do so, as was stated


The local center component of the program is not. It belongs to an appropriations bill that was established in 1992, and considering that then that program has been expanded five 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 date of expiry in September.


The process takes an excellent while next to develop a project and afterwards to get the investors accepted. And they do not additional reading want their cash flowing with until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth 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 regular EB-5 law that is part of the code. It just is a truth that the majority of the regional centers that are pooling investments have actually established those instead of high unemployment or in backwoods where half- million-dollar investments are enabled, and that makes sense.