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The program is placed in an extremely weird and non-helpful administrative area for the excitement of international financial investment in the United States. We are giving away also much for as well small of an investment.


The regional centers, with their half-million schemes, essentially undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should be about developing organization entities, not passive investments. It must have to do with developing actual tasks, not specify estimations concerning the indirect development of tasks, which is currently part of the regulations.


Probably that is one of the reasons it has fallen short time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too loaded with intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will enter into later if anybody is interested.


This is an agency that enjoys to say yes to candidates, yet as the table in my testament shows, USCIS officers have far more problem with EB-5 applications than others. I believe that is something that nobody has actually actually chatted around much. EB5 Regional Center Program. There are high prices of inner rejections in this program and for excellent reason

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Seventh, in this program visas go to individuals who can not get them any kind of various other means and to individuals whose scheduled investment is really much less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Allow me increase on among my monitorings.


My price quote based on the investors' eco-friendly card applications filed 2 years after the initial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not provide the sort of information that we might utilize on this.


So for every single $100 of boosted foreign financial investment that year, the EB program added one penny. Under a a lot more shaky statistical base, the initial applications of potential immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us accept 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 offered as Chief Guidance of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Director. He has actually functioned extensively with the EB-5 program in exclusive practice. He was elected, as I recognize, vice president of the Organization to Buy USA, the national sector association of local centers.


Divine, we are happy to have you below. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, but it is growing and getting towards that. Specifically as USCIS, the firm that oversees the program, has been making the rules clearer and the processes much more logical and clear for the individuals that are arranging financial investments and for the financiers who are investing, more people have actually wanted and able to place initiative and cash right into the process to locate excellent projects and develop them, and afterwards extra financiers have agreed to invest their money and take the danger 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 for life, and USCIS comprehends that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in reality, they are prepared to refute applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations website expense that was enacted in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes an excellent while to function up a project and afterwards to get the financiers accepted. And they do not want their cash streaming through until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already dissuading the growth of jobs.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 legislation that is part of the code. It simply is a reality that many of the local centers that are merging investments have actually set those instead of high unemployment or in rural areas where fifty percent- million-dollar financial investments are enabled, which makes sense.