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The program is positioned in a very weird and non-helpful governmental location for the stimulation of global financial investment in the United States. We are giving away too much for too little of an investment.

The regional facilities, with their half-million plans, basically undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to be regarding creating service entities, not passive financial investments. It needs to have to do with creating real jobs, not elaborate calculations regarding the indirect production of jobs, which is currently part of the regulations.


Probably that is one of the factors why it has stopped working time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too filled with intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will enter into later if anyone is interested.


This is a firm that loves to state yes to applicants, however as the table in my testimony reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually actually spoken about much. EB5 Regional Center Program. There are high rates of interior denials in this program and completely reason

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Seventh, in this program visas go to individuals that might not get them any kind of various other means and to individuals whose planned investment is actually much less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Allow me expand on one of my observations.


My quote based upon the investors' environment-friendly card applications filed 2 years after the very first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not provide the kind of data that we might make use of on this.


So for every $100 of boosted foreign financial investment that year, the EB program contributed one dime. Under a much more wobbly analytical base, the initial applications of would-be immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's migration practice group.

Divine worked as Chief Advice of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has functioned extensively with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Organization to Purchase USA, the national market 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, Senator Grassley, and others.


At many, if all 10,000 slots were made use of, it would be 1 percent of the immigration annually to the United States. It is not near that yet, however it is growing and getting toward that. Especially as click here USCIS, the agency that oversees the program, has been making the rules more clear and the processes extra logical and clear for the people who are organizing investments and for the investors who are investing, even more individuals have wanted and able to put effort and money right into the process to find great tasks and create them, and then much more investors have wanted to invest their cash and take the threat and utilize the cash to create the tasks that is the point of the program.

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These jobs do not linger for life, and USCIS understands that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was discussed

The regional center part of the program is not. It is part of an appropriations bill that was established in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to develop a task and afterwards to obtain the financiers authorized. And they do not want their cash streaming through till they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently preventing the development of projects.

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I would like to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 regulation that belongs to the code. It simply is a truth that the majority of the local centers that are pooling investments have set those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, which makes sense.