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First, the program is placed in a very odd and non-helpful bureaucratic location for the stimulation of global investment in the United States. Second, its scale is all incorrect. We are handing out excessive for also small of a financial investment. Further, increasing financial backing half a million dollars a tranche is, to state the least, ineffective.

The regional facilities, with their half-million plans, essentially damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must have to do with producing organization entities, not passive investments. It ought to have to do with producing actual jobs, not elaborate computations about the indirect development of work, which is now component of the legislation.


Probably that is among the reasons that it has stopped working year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with middlemen, both public and personal. The program has greater than its share of scandals, which I will certainly get involved in later on if any person is interested.


This is a firm that likes to claim yes to applicants, but as the table in my statement reveals, USCIS officers have far more trouble with EB-5 applications than others. I believe that is something that no one has really spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals that might not get them otherwise and to individuals whose organized financial investment is actually less, according to the Federal Get, than the ordinary mean internet worth of all American households in 2007. Let me expand on among my monitorings.


My price quote based upon the financiers' environment-friendly card applications submitted 2 years after the first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not offer the kind of information that we might use on this.


So for every $100 of raised foreign financial investment that year, the EB program contributed one dime. Under a far more shaky analytical base, the first applications of prospective immigrant financiers, USCIS is informing reporters that the degree of financial investment in the just-concluded year was regarding $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 firm's migration practice group.

Divine worked as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. Read Full Report He has functioned extensively with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state of the Association to Purchase U.S.A., the national market association of local centers.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (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, yet it is growing and getting towards that. Especially as USCIS, the firm that manages the program, has actually been making the rules clearer and the procedures more logical and clear for individuals that are arranging financial investments and for the investors who are investing, even more people have wanted and able to place initiative and cash into the procedure to find great tasks and develop them, and after that extra investors have wanted to spend their cash and take the risk and utilize the money to produce the jobs that is the point of the program.

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These tasks do not wait about permanently, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was pointed out

The regional facility component of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has been prolonged 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 expiration in September.


The procedure takes an excellent while to work up a project and afterwards to obtain the investors approved. And they do not want their cash flowing with until they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently preventing the growth of projects.

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I would love to make clear that the Regional Facility he said Program is not read review the like the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 legislation that belongs to the code. It simply is a truth that the majority of the regional facilities that are pooling financial investments have actually established those in places of high unemployment or in rural areas where half- million-dollar financial investments are enabled, and that makes good sense.