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The program is positioned in an extremely odd and non-helpful governmental place for the stimulation of worldwide financial investment in the United States. We are giving away too much for also little of a financial investment.


The local facilities, with their half-million systems, basically damaged the extra 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 concerning developing organization entities, not easy financial investments. It needs to be concerning developing real work, not specify estimations concerning the indirect creation of tasks, which is currently part of the regulation.


Maybe that is just one of the reasons that it has actually fallen short time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of middlemen, both public and private. The program has even more than its share of detractions, which I will get right into later if anybody is interested.


This is a firm that likes to say yes to applicants, yet as the table in my testament shows, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and permanently reason

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Seventh, in this program visas go to individuals that could not obtain them differently and to individuals whose planned financial investment is actually less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Let me broaden on among my monitorings.


My estimate based on the capitalists' permit applications submitted 2 years after the initial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not give the type of data that we can utilize on this.


So for every $100 of increased international investment that year, the EB program contributed one dime. Under a a lot more shaky analytical base, the first applications of prospective immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's migration method group.




Divine served as Principal Guidance of the United States Citizenship and here Migration Services from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Director. He has worked extensively with the EB-5 program in private method. He was chosen, as I understand, vice head of state of the Organization to Spend in United States, the nationwide market association of regional.


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


At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the company that oversees the program, has actually been making the policies clearer and the processes more rational and clear for individuals who are organizing investments and for the capitalists that are investing, even more individuals have been willing and able to place effort and money right into the procedure to find good projects and develop them, and afterwards much more financiers have actually been willing to invest their cash and take the risk and use the cash to create the work 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 up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has actually 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 day of expiration in September.


The process takes a great while to work up a task and after that to get the capitalists accepted. And they do not desire their money moving through until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already preventing the development of jobs.

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I wish to clarify 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 routine EB-5 regulation that becomes part of the code. It simply is a truth that many of the regional centers that are merging investments have actually set those instead of high joblessness or in rural locations where fifty percent- million-dollar investments are permitted, and that makes good sense.