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

The local facilities, with their half-million plans, basically undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, must be regarding creating organization entities, not passive investments. It must have to do with creating genuine tasks, not elaborate estimations regarding the indirect development of tasks, which is currently component of the legislation.


Possibly that is one of the factors why it has fallen short time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with middlemen, both public and personal. The program has more than its share of detractions, which I will enter later on if anyone is interested.


This is an agency that enjoys to say yes to candidates, but as the table in my testament shows, USCIS officers have much extra difficulty with EB-5 applications than others. I assume that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and for great reason

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Seventh, in this program visas go to individuals who might not obtain them differently and to people whose organized investment is really less, according to the Federal Book, than the ordinary mean internet well worth of all American families in 2007. Allow me increase on one of my monitorings.


My estimate based upon the investors' copyright applications filed 2 years after the very first financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not give the kind of data that we might utilize on this.


For every $100 of increased foreign investment that year, the EB program contributed one cent. Under a far more unsteady statistical base, the initial applications of would-be immigrant capitalists, USCIS is informing reporters that the degree of 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 immigration technique group.

Divine functioned as Principal Counsel of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and after that Performing Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive method. He was elected, as I comprehend, vice president of the Association to Invest in USA, the nationwide market association of local.


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


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, but it is growing and obtaining towards that. Especially as USCIS, the agency that manages the program, has been making the policies more clear and the processes extra logical and clear for individuals who are arranging financial investments and for the investors that are investing, more individuals have actually been ready and able to place effort and money into the procedure to locate good projects and establish them, and then extra financiers have actually agreed to spend their cash and take the danger and utilize the cash to create the work that is the point of the program.

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These projects do not wait about for life, and USCIS understands that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was pointed out

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


The procedure takes a good while to function up a job and then to get the financiers authorized. And they do not desire their money moving via until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently dissuading the advancement of jobs.

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I want to make clear that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It simply is a reality that a lot of the regional facilities that are pooling investments have established those in areas of high unemployment or in rural locations where half- million-dollar investments are enabled, which makes feeling.