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The program is placed in a very weird and non-helpful bureaucratic area for the stimulation of worldwide investment in the United States. We are providing away also much for as well little of a financial investment.


The regional facilities, with their half-million systems, basically undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should have to do with producing organization entities, not easy financial investments. It should have to do with creating genuine tasks, not specify calculations regarding the indirect development of tasks, which is now component of the regulation.


Probably that is just one of the reasons that it has failed every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of intermediaries, both public and private. The program has more than its share of detractions, which I will certainly enter into later on if any person is interested.


This is a firm that enjoys to claim yes to applicants, but as the table in my testimony shows, USCIS officers have much more difficulty 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 rejections in this program and forever factor

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Seventh, in this program visas go to individuals who might not get them otherwise and to people whose planned investment is actually less, according to the Federal Book, than the average mean net worth of all American households in 2007. Allow me increase on among my monitorings.


My estimate based upon the investors' permit applications filed 2 years after the first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not supply the kind of data that we can utilize on this.


So for every $100 of boosted international financial investment that year, the EB program contributed one dime. Under a far more wobbly statistical base, the initial applications of potential immigrant capitalists, USCIS is telling 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 company's migration method team.




Divine acted as Principal Advise of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and after that Acting Replacement Director. He has worked extensively with the EB-5 program in personal technique. He was elected, as I recognize, vice president of the Organization to Spend in U.S.A., the national market organization of local.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, This Site 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 most, if all 10,000 ports were used, it would be 1 percent of the migration annually to the USA. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the agency that looks after the program, has been making the policies clearer and the procedures much more sensible and clear for individuals that are organizing investments and for the investors that are spending, more people have been prepared and able to place effort and cash into the process to find good jobs and create them, and afterwards more capitalists have been ready to invest their money and take the risk and make use of the cash to produce the tasks that is the factor of the program.

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These tasks do not linger forever, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they are all set to reject applications that are not qualifying. And they do so, as was pointed out


The local facility component of the program is not. It is part of an appropriations costs that was enacted in 1992, and since then that program has been extended five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to function up a job straight from the source and after that to get the investors approved. And they do not want their money streaming via up until look what i found they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently preventing the development of projects.

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I would certainly like to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 law that is part of the code. It simply is a fact that a lot of the local facilities that are pooling investments have established those in areas of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes good sense.