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The program is put in a really odd and non-helpful governmental location for the stimulation of global financial investment in the United States. We are providing away also much for as well tiny of an investment.


The regional centers, with their half-million plans, essentially undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should be about producing organization entities, not easy financial investments. It should be about developing actual work, not elaborate calculations concerning the indirect creation of jobs, which is currently component of the regulation.


Probably that is among the reasons that it has fallen short year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with middlemen, both public and private. The program has greater than its share of rumors, which I will get right into later on if anyone is interested.


This is a company that enjoys to state yes to applicants, but as the table in my testimony reveals, USCIS officers have far more trouble with EB-5 applications than others. I think that is something that no one has really spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and forever reason

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Seventh, in this program visas most likely to people that might not obtain them differently and to people whose scheduled investment is actually less, according to the Federal Reserve, than the average mean internet well worth of all American families in 2007. Allow me expand on one of my monitorings.


My estimate based upon the investors' permit applications filed 2 years after the very first financial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not give the kind of information that we can use on this.


So for each $100 of boosted international investment that year, the EB program added one dime. Under a a lot more shaky statistical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the level of financial 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 company's immigration practice group.




Divine functioned as Principal Guidance of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program in private method. He was elected, as I understand, vice president of the Association to Invest in United States, the nationwide sector organization of local.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, click here BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 slots were used, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is expanding and getting toward that. Particularly as USCIS, the company that looks after the program, has actually been making the policies clearer and the processes more rational and clear for the individuals that are organizing investments and for the capitalists that are spending, even more people have actually wanted and able to place effort and cash right into the process to locate great projects and create them, and afterwards much more capitalists have been ready to invest their money and take the threat and make use of the cash to produce the tasks that is the point of the program.

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These projects do not wait around permanently, and USCIS understands that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, in truth, they prepare to refute applications that are not qualifying. And they do so, as was stated


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


The process takes a good while to work up a job and after that to obtain the capitalists accepted. And they do not desire their cash moving through until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the growth of jobs.

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I would love to clear up that the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 law that belongs to the code. It just is a fact that a lot of the local centers that are pooling financial investments have established those in places of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes feeling.