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

The regional centers, with their half-million schemes, essentially undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to have to do with developing company entities, not easy investments. It needs to have to do with developing real work, not clarify calculations regarding the indirect creation of tasks, which is currently part of the regulations.


Maybe that is one of the factors why it has stopped working year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with middlemen, both public and personal. The program has even more than its share of scandals, which I will certainly enter into later if anybody is interested.


This is a company that loves to claim yes to candidates, however as the table in my testament shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has actually spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever factor

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Seventh, in this program visas go to people that can not obtain them differently and to people whose organized financial investment is actually less, according to the Federal Reserve, than the typical mean internet well worth of all American households in 2007. Allow me broaden on among my observations.


My estimate based on the financiers' copyright applications filed 2 years after the very first investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not give the sort of data that we could use on this.


For every $100 of raised international investment that year, the EB program contributed one dime. Under a far more shaky analytical base, the preliminary applications of potential immigrant investors, USCIS is informing reporters that the level 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 firm's migration practice team.

Divine offered as Chief Advise of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Replacement Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was elected, as I understand, vice head of state of the Association to Buy U.S.A., the national sector association of local facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At most, if all EB5 Regional Center Program 10,000 ports were used, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and getting towards that. Particularly as USCIS, the company that supervises the program, has actually been making the rules clearer and the procedures much more sensible and clear for the people that are arranging investments and for the financiers that are investing, more people have wanted and able to place effort and money into the process to discover excellent projects and develop them, and afterwards a lot more capitalists have been ready to invest their money and take the danger and make use of the money to produce the tasks that is the point of the program.

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These projects do not wait around forever, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, in reality, they prepare to deny applications that are not qualifying. And they do so, as was stated

The local center component of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes an excellent while to develop a project and after that to get the investors approved. And they do not desire their money streaming through up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the advancement of tasks.

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I would love to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It simply is a fact that many of the local facilities that are merging financial investments have actually set those in locations of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes good sense.