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The program is placed in a really weird and non-helpful bureaucratic area for the stimulation of worldwide financial investment in the United States. We are providing away also much for as well small of a financial investment.


The local facilities, with their half-million plans, basically undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must have to do with producing service entities, not passive investments. It ought to have to do with developing actual tasks, not elaborate computations about the indirect creation of jobs, which is currently component of the regulations.


Probably that is just one of the reasons why it has actually fallen short year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with middlemen, both public and exclusive. The program has more than its share of rumors, which I will certainly enter later if anybody is interested.


This is a company that enjoys to say yes to candidates, however as the table in my statement reveals, USCIS police officers have far more problem with EB-5 applications than others. I think that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high prices of interior rejections in this program and completely reason

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Seventh, in this program visas go to people that could not obtain them otherwise and to individuals whose scheduled investment is in fact less, according to the Federal Book, than the average mean total assets of all American households in 2007. Let me increase on among my observations.


My quote based upon the capitalists' permit applications submitted 2 years after the very first financial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not offer the kind of data that we can utilize on this.


For every $100 of boosted foreign investment that year, the EB program added one penny. Under a far more unsteady statistical base, the preliminary applications of prospective immigrant investors, USCIS is telling journalists that the degree of investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you right here for paying attention to me. Chairman Leahy. He is the head of the firm's immigration practice team.




Divine worked as Chief Advice of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Director, and after that Acting Deputy Supervisor. He has functioned extensively with the EB-5 program secretive method. He was chosen, as I understand, vice president of the Association to Spend in United States, the nationwide market association of regional.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, but it is growing and getting towards that. Especially as USCIS, the agency that supervises the program, has been making the guidelines clearer and More about the author the procedures a lot more rational and clear for individuals who are organizing investments and for the investors who are spending, even more people have wanted and able to place effort and cash right into the procedure to find good projects and create them, and afterwards much more investors have wanted to spend their cash and take the threat and make use of the money to produce the tasks that is the point of the program.

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These tasks do not linger forever, and USCIS understands that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, as a matter of fact, they are prepared to refute applications that are not certifying. And they do so, as was discussed


The local center part of the program is not. It becomes part of an appropriations expense that was established in 1992, and since then that program has been expanded 5 times for 19 years. It is time for it to be irreversible, and important link it requires to be done now and not nearer to the date of expiration in September.


The procedure takes a good while to develop a project and after that to get the investors approved. And they do not want their money moving with till they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already preventing the growth of tasks.

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I would certainly like to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 legislation that is part of the code. It simply is a fact that many of the local facilities that are merging financial investments have actually established those in locations of high unemployment or in rural areas where fifty percent- million-dollar investments are enabled, and that makes good sense.