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The program is put in a really odd and non-helpful governmental area for the excitement of international investment in the United States. We are providing away also much for as well tiny of an investment.


The local centers, with their half-million plans, basically damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should be about creating company entities, not passive investments. It must have to do with creating genuine tasks, not clarify calculations about the indirect development of jobs, which is now part of the regulation.


Probably that is just one of the reasons it has stopped working every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also filled up with middlemen, both public and exclusive. The program has even more than its share of rumors, which I will enter into later if anybody is interested.


This is a firm that enjoys to state yes to applicants, but as the table in my testimony shows, USCIS police officers have a lot a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has truly spoken about a lot. 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 most likely to people who could not get them differently and to people whose scheduled financial investment is in fact less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Let me increase on one of my observations.


My price quote based upon the investors' permit applications filed 2 years after the initial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not provide the kind of information that we can make use of on this.


So for every single $100 of raised international investment that year, the EB program added one penny. Under a a lot more wobbly statistical base, the first applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of investment in the just-concluded year was about $1.2 billion. Let us accept more info that.

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




Divine acted as Chief Advise of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Director. He has functioned extensively with the EB-5 program in private technique. He was elected, as I understand, vice head of state of the Organization to Buy U.S.A., the nationwide sector organization of local facilities.


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


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the immigration each year to the USA. It is not near that yet, yet it is growing and obtaining towards that. Specifically as USCIS, the firm that oversees the program, has actually been making the rules more clear and the procedures extra sensible and clear for individuals that are organizing financial investments and for the capitalists that are spending, more individuals have wanted and able to place effort and money into the procedure to locate excellent jobs and develop them, and afterwards extra investors have actually wanted to spend their cash and take the risk and make use of the cash to create the work that is the point of the program.

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These projects do not linger permanently, and USCIS understands that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, in reality, they are all set to reject applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It is component of an appropriations costs that was established in 1992, and since then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiry in September.


The process takes a great while to function up a job and afterwards to obtain the investors authorized. And they do not desire their money flowing with till they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already dissuading the development of tasks.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 legislation that is component of the code. It just is a reality that the majority of the local centers that are merging financial investments have actually established those in areas of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, and that makes sense.