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The program is positioned in an extremely strange and non-helpful administrative location for the stimulation of international investment in the United States. Second, its range is all incorrect. We are giving away way too much for too tiny of a financial investment. Even more, elevating venture funding half a million dollars a tranche is, to state the least, ineffective.


The local centers, with their half-million plans, basically damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to be about creating company entities, not easy financial investments. It should have to do with creating real work, not clarify calculations concerning the indirect creation of jobs, which is now part of the regulations.


Maybe that is among the factors why it has actually failed year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too full of middlemen, both public and private. The program has even more than its share of scandals, which I will enter into later on if anyone is interested.


This is an agency that likes to claim yes to applicants, but as the table in my testimony shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has really discussed much. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently reason

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Seventh, in this program visas go to individuals who might not obtain them differently and to people whose scheduled financial investment is really less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Allow me broaden on among my monitorings.


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


So for each $100 of enhanced international investment that year, the EB program contributed one penny. Under a far more wobbly analytical base, the first applications of potential immigrant financiers, USCIS is telling journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you visite site for paying attention to me. Chairman Leahy. He is the head of the company's immigration practice group.




Divine acted as Chief Advise of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and after that Performing Replacement Supervisor. He has actually worked extensively with the EB-5 program in exclusive technique. He was elected, as I comprehend, vice president of the Organization to Spend in U.S.A., the nationwide sector organization of local.


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


At most, if all 10,000 slots were used, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is expanding and obtaining towards that. Especially as USCIS, the company that looks after the program, has look here been making the policies more clear and the procedures extra sensible and clear for individuals that are organizing investments and for the financiers that are spending, more individuals have actually agreed and able to put effort and money right into the process to find good tasks and develop them, and afterwards much more financiers have been eager to invest 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 tasks do not linger a fantastic read forever, and USCIS comprehends 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 analysis, and, actually, they prepare to deny applications that are not certifying. And they do so, as was discussed


The regional center component of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a good while to develop a project and afterwards to obtain the capitalists approved. And they do not want their money moving with till they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the advancement of projects.

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I would love to clarify 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 normal EB-5 law that is component of the code. It just is a fact that the majority of the regional centers that are pooling financial investments have actually set those in locations of high unemployment or in backwoods where half- million-dollar investments are allowed, which makes sense.