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The program is positioned in a very strange and non-helpful administrative location for the excitement of worldwide investment in the United States. We are providing away too much for too little of a financial investment.


The local 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, need to have to do with developing organization entities, not easy financial investments. It ought to have to do with developing genuine tasks, not elaborate estimations regarding the indirect development of tasks, which is now component of the regulation.


Probably that is one of the reasons it has actually failed time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of intermediaries, both public and exclusive. The program has more than its share of scandals, which I will get into later on if any person is interested.


This is a firm that loves to state yes to applicants, yet as the table in my testimony reveals, USCIS officers have a lot more problem with EB-5 applications than others. I believe that is something that no one has truly talked around much. EB5 Regional Center Program. There are high rates of interior rejections in this program and completely factor

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Seventh, in this program visas go to individuals who can not get them any type of other means and to individuals whose planned financial investment is in fact much less, according to the Federal Reserve, than the average mean internet well worth of all American family members in 2007. Allow me increase on among my observations.


My price quote based on the investors' copyright applications submitted 2 years after the very first financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not give the type of data that we could utilize on this.


So for each $100 of increased foreign investment that year, the EB program contributed one cent. Under a much a lot more shaky analytical base, the first applications of would-be immigrant investors, USCIS is telling reporters that the level of financial 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 method team.




Divine worked as Chief Advice of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program in personal practice. He was elected, as I comprehend, vice president of the Association to Spend in United States, the nationwide market organization of regional.


Divine, we are thrilled to have you below. Please go on, sir. DECLARATION 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. Thank you for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, but it is expanding and getting toward that. Specifically as USCIS, the company that manages the program, has actually been making the regulations more clear and the procedures more sensible and clear for the individuals who are arranging investments and for the investors that are investing, even more individuals have actually been ready and able to put effort and cash into the procedure to discover good tasks and create them, and then a lot more investors have been willing to invest their money and take the danger and utilize the cash EB5 Regional Center Program to produce the tasks that is the point of the program.

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These tasks do not wait about forever, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, actually, they are ready to reject applications that are not certifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since 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 currently and not nearer to the date of expiry in September.


The procedure takes a great while to function up a project and then to obtain the investors authorized. And they do not desire their cash streaming through up until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the growth of tasks.

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I would certainly like to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 regulation that belongs to the code. It just is a truth that the majority of the local facilities that are pooling financial investments have actually set those instead of high unemployment or in backwoods where half- million-dollar investments are enabled, and that makes good sense.