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The program is put in a really odd and non-helpful administrative place for the excitement of global financial investment in the United States. We are giving away also much for too small of an investment.


The local centers, with their half-million plans, basically undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to be regarding producing service entities, not passive investments. It needs to have to do with producing genuine work, not specify computations about the indirect development of tasks, which is currently part of the regulations.


Perhaps that is among the factors why it has fallen short 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 intermediaries, both public and private. The program has even more than its share of scandals, which I will get involved in later on if anybody is interested.


This is an agency that loves to state yes to applicants, but as the table in my testimony shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually actually spoken about a lot. 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 who can not obtain them otherwise and to individuals whose scheduled financial investment is really less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Allow me increase on one of my monitorings.


My quote based on the investors' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not provide the type of data that we can make use of on this.


So for every single $100 of boosted international investment that year, the EB program contributed one cent. Under a far more shaky analytical base, the initial applications of potential immigrant financiers, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do with $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 immigration practice group.




Divine acted as Chief Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and then Performing Replacement Director. He has functioned extensively with the EB-5 program in exclusive method. He was chosen, as I comprehend, vice head of state of the Association to Spend in United States, redirected here the nationwide sector organization of regional.


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


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration each year to the USA. It is not near that yet, however it is expanding and obtaining toward that. Specifically as USCIS, the agency that looks after the program, has actually been making the rules clearer and the procedures more reasonable and clear for the people that are organizing investments and for the capitalists who are spending, even more people have wanted and able to place initiative and money into the process to discover good tasks and develop them, and after that much more capitalists have agreed to spend their cash and take the threat and utilize the cash to create the tasks that is the point of the program.

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These tasks do not linger permanently, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The regional center component of the program is not. It becomes part of an appropriations expense that was passed in 1992, and ever since Read More Here that program has been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The process takes a good while to function up a task and find here after that to get the capitalists accepted. And they do not desire their money moving via up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is currently discouraging the growth of projects.

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I would like to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 law that belongs to the code. It simply is a reality that the majority of the regional centers that are pooling investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, and that makes good sense.