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The program is positioned in a very weird and non-helpful administrative area for the stimulation of international investment in the United States. Second, its range is all wrong. We are providing away also much for as well little of a financial investment. Additionally, increasing financial backing fifty percent a million bucks a tranche is, to claim the least, inefficient.


The local facilities, with their half-million systems, essentially damaged the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to be regarding creating business entities, not passive financial investments. It needs to be regarding developing real work, not specify calculations regarding the indirect production of jobs, which is now part of the regulation.


Probably that is one of the reasons why it has actually fallen short time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with middlemen, both public and private. The program has more than its share of rumors, which I will certainly obtain into later if anybody is interested.


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

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Seventh, in this program visas most likely to individuals that might not obtain them any kind of various other way and to people whose planned investment is in fact less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Let me expand on one of my observations.


My quote based upon the capitalists' eco-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not offer the kind of information that we could utilize on this.


So for each $100 of enhanced foreign investment that year, the EB program added one penny. Under a much extra unsteady statistical base, the initial applications of would-be immigrant investors, USCIS is telling journalists that the level 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 firm's migration method team.




Divine worked as Principal Counsel of the United States Citizenship and image source Migration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Replacement Director. He has actually worked extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice head of state of the Association to Spend in USA, the national sector association of local.


Divine, we are pleased to have you here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were used, it would be 1 percent of the immigration each year to the USA. It is not near that yet, yet it is growing and getting towards that. Especially as USCIS, the firm that oversees the program, has actually been making the guidelines more clear and the procedures much more rational and clear for individuals who are organizing investments and for the capitalists that are investing, even more people have actually wanted and able to put initiative and money right into the process to locate great jobs and create them, and after that a lot more investors have wanted to invest their money and take the danger and use the money to produce the tasks that is the factor of the program.

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These projects do not wait around forever, and USCIS comprehends that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they visit homepage are unwinding their scrutiny, and, as a matter of fact, they are all set to deny applications that are not qualifying. And they do so, as was pointed out


The local center part of the program is not. It becomes part of an appropriations costs that was established in 1992, and given that then that program has actually been extended 5 times for 19 years. It Discover More is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes a great while to work up a project and after that to obtain the investors accepted. And they do not desire their cash moving with until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already preventing the growth of projects.

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I would certainly like to clarify 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 feature of the routine EB-5 law that is part of the code. It just is a truth that a lot of the regional facilities that are merging financial investments have set those in areas of high joblessness or in backwoods where fifty percent- million-dollar investments are allowed, which makes feeling.