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The program is positioned in a really strange and non-helpful bureaucratic area for the stimulation of worldwide investment in the United States. We are providing away also much for as well tiny of an investment.

The local facilities, with their half-million systems, basically damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to have to do with developing company entities, not passive investments. It must be concerning creating genuine work, not clarify calculations about the indirect creation of jobs, which is currently component of the regulations.


Possibly that is one of the reasons it has failed year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will certainly enter into later on if any person is interested.


This is a company that likes to say yes to applicants, yet as the table in my statement shows, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and forever factor

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Seventh, in this program visas go to individuals who can not get them otherwise and to people whose scheduled financial investment is actually less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Let me increase on one of my observations.


My estimate based on the capitalists' eco-friendly card applications filed 2 years after the first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not provide the type of information that we might use on this.


So for each $100 of raised foreign investment that year, the EB program added one cent. Under a much a lot more unsteady analytical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's migration method team.

Divine worked as Principal Guidance of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has actually functioned extensively with the EB-5 program secretive practice. He was chosen, as I recognize, vice president of the Association to Purchase U.S.A., the nationwide sector organization of local facilities.


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


At a lot of, if all 10,000 ports were used, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the company that oversees the program, has actually been making the policies clearer and the processes much more logical and clear for individuals who are arranging financial investments and for the financiers who are investing, even more people have agreed and website able to place initiative and money into the procedure to locate great projects and develop them, and afterwards a lot more investors have agreed to spend their cash and take the threat and utilize the cash to develop the tasks that is the point of the program.

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These tasks do not linger for life, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was mentioned

The local facility component of the program is not. It becomes part of an appropriations expense that was passed 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 currently and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a job and then to get the investors approved. And they do not desire their cash streaming through until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is already dissuading the development of tasks.

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I wish to make clear 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 belongs to the code. It just is a truth that the majority of the regional facilities that are pooling financial investments have established those in places of high joblessness or in rural areas where fifty percent- million-dollar investments are enabled, which makes feeling.