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The program is positioned in a really strange and non-helpful bureaucratic location for the stimulation of international investment in the United States. We are offering away too much for too small of a financial investment.


The regional facilities, with their half-million plans, basically damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should have to do with creating service entities, not easy investments. It should be about creating genuine tasks, not elaborate calculations regarding the indirect creation of tasks, which is currently part of the regulation.


Possibly that is just one of the reasons why it has fallen short every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well loaded with intermediaries, both public and personal. The program has even more than its share of scandals, which I will get involved in later on if anyone is interested.


This is a firm that loves to say yes to applicants, yet as the table in my testament shows, USCIS police officers have a lot extra problem with EB-5 applications than others. I think that is something that nobody has actually truly chatted about much. EB5 Regional Center Program. There are high rates of interior denials in this program and for excellent reason

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Seventh, in this program visas go to individuals who can not get them otherwise and to individuals whose scheduled investment is in fact less, according to the Federal Reserve, than the ordinary mean web worth of all American families in 2007. Allow me increase on one of my observations.


My estimate based upon the investors' permit applications submitted 2 years after the first investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not offer the kind of data that we might make use of on this.


So for every single $100 of raised foreign investment that year, the EB program added one penny. Under a far more shaky statistical base, the initial applications of potential immigrant investors, USCIS is informing reporters that the level of investment in the just-concluded year was about $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 technique group.




Divine worked as Chief Advice of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Director, and then Acting Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive method. He was elected, read the article as I comprehend, vice president of the Association to Purchase USA, the nationwide industry association of regional centers.


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, Senator Grassley, and others.


At the majority of, if all 10,000 slots were utilized, it would 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. Particularly as USCIS, the firm that supervises the program, has been making the regulations clearer and the procedures a lot more sensible and clear for the individuals that are organizing financial investments and for the capitalists that are spending, even more individuals have actually been ready and able to put effort and money into the process to find great projects and develop them, and after that much more capitalists have actually agreed to invest their cash and take the threat and use the cash to develop the jobs that is official statement the point of the program.

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These tasks do not wait about forever, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, in truth, they are ready to reject applications that are not qualifying. And they do so, as was discussed


The local center part of the program is not. It belongs to an appropriations bill 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, go to these guys and it requires to be done currently and not nearer to the day of expiration in September.


The process takes a good while to work up a job and after that to obtain the capitalists approved. And they do not want their money streaming through up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of projects.

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I wish to clear up that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 legislation that becomes part of the code. It just is a fact that a lot of the regional facilities that are pooling investments have established those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, which makes good sense.