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The program is positioned in a really strange and non-helpful governmental place for the stimulation of international financial investment in the United States. We are giving away also much for too tiny of an investment.


The regional facilities, with their half-million schemes, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, ought to be regarding creating business entities, not easy investments. It should have to do with developing genuine work, not elaborate estimations concerning the indirect creation of tasks, which is currently component of the legislation.


Perhaps that is among the reasons it has actually failed year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also filled with intermediaries, both public and personal. The program has greater than its share of scandals, which I will get right into later if anybody is interested.


This is a firm that loves to say yes to applicants, however as the table in my testimony shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has really chatted about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and for excellent reason

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Seventh, in this program visas most likely to individuals that can not obtain them differently and to individuals whose scheduled financial investment is in fact much less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Let me expand on among my observations.


My quote based on the financiers' permit applications submitted 2 years after the first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not give the sort of information that we can use on this.


For every $100 of raised international investment that year, the EB program contributed one penny. Under a far more unsteady analytical base, the first applications of potential immigrant financiers, 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 acted as Principal Guidance of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Replacement Director. He has actually functioned extensively with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Association to Spend in U.S.A., the national industry association of local.


STATEMENT 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, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is growing and obtaining towards that. Particularly as USCIS, the company that supervises the program, has been making the guidelines more clear and the processes more rational and clear for the individuals who are organizing investments and for the investors who are investing, even more individuals browse around these guys have agreed and able to place effort and cash right into the process to discover good tasks and establish them, and afterwards more capitalists have been prepared to invest their cash and take the threat and use the money to create the tasks that is the point of the program.

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These tasks do not linger for life, and USCIS comprehends that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not visit this page indicate that they are relaxing their scrutiny, and, as a matter of fact, they are ready to reject applications that are not certifying. And they do so, as was pointed out


The regional facility part of the program is not. It is component of an appropriations bill that was passed in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date news of expiry in September.


The process takes an excellent while to work up a task and after that to obtain the financiers accepted. And they do not want their cash moving through up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the growth of projects.

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I would love to clarify that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that belongs to the code. It just is a reality that the majority of the regional centers that are pooling financial investments have actually established those instead of high joblessness or in country locations where fifty percent- million-dollar financial investments are allowed, and that makes good sense.