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The program is positioned in a really strange and non-helpful bureaucratic place for the stimulation of worldwide investment in the United States. Second, its range is all incorrect. We are distributing as well much for as well small of an investment. Further, elevating endeavor resources fifty percent a million bucks a tranche is, to claim the least, ineffective.

The local centers, with their half-million systems, basically damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should be regarding developing business entities, not passive investments. It needs to be regarding developing actual jobs, not specify calculations concerning the indirect production of tasks, which is currently part of the regulation.


Maybe that is one of the reasons why it has failed every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with middlemen, both public and personal. The program has greater than its share of scandals, which I will enter later if anyone is interested.


This is an agency that loves to state yes to candidates, however as the table in my testimony reveals, USCIS officers have a lot more problem with EB-5 applications than others. I think that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas most likely to people that might not obtain them any other way and to individuals whose scheduled financial investment is in fact less, according to the Federal Reserve, than the ordinary mean net worth of all American families in 2007. Allow me increase on one of my monitorings.


My estimate based on the financiers' permit applications filed 2 years after the very first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not supply the type of information that we might use on this.


For every $100 of raised international financial investment that year, the EB program added one cent. Under a much a lot more wobbly statistical base, the initial applications of potential immigrant investors, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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

Divine functioned as Chief Counsel of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice president of the Association to Invest in United great site States, the nationwide sector organization of regional.


Divine, we are pleased to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were utilized, it would be 1 percent of the migration annually to the United States. It is not near that yet, but it is growing and getting toward that. Especially as USCIS, the agency that supervises the program, has been making the regulations more clear and the procedures much more logical and clear for the people who are arranging financial investments and for the capitalists that are spending, even more people have agreed and able to put initiative and money right into the procedure to discover excellent jobs and develop them, and after that more capitalists have actually agreed to invest their cash and take the find out this here threat and use the money to create the jobs that is the point of the program.

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These tasks do not wait about forever, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they are prepared to refute applications that are not qualifying. And they do so, as was mentioned

The local facility part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and given that then that program has actually been prolonged five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The process takes a great while to work up a task and after that to get the capitalists accepted. And they do not want their money flowing with until they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the advancement of tasks.

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I wish to make clear that the Regional Center Program is not the same as the half-million-dollar point. The idea of half a million or a view it million is a feature of the regular EB-5 regulation that becomes part of the code. It just is a fact that a lot of the local facilities that are merging investments have actually set those in places of high joblessness or in backwoods where fifty percent- million-dollar investments are permitted, and that makes good sense.