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First, the program is put in a very odd and non-helpful administrative location for the stimulation of global investment in the USA. Second, its scale is all wrong. We are providing away excessive for as well small of a financial investment. Even more, elevating venture resources half a million dollars a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million plans, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be about producing organization entities, not easy investments. It must have to do with developing genuine work, not clarify estimations concerning the indirect development of jobs, which is now component of the regulations.


Perhaps that is just one of the factors why it has failed every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too filled with intermediaries, both public and private. The program has more than its share of rumors, which I will certainly obtain right into later on if anyone is interested.


This is an agency that loves to say yes to applicants, but as the table in my statement reveals, USCIS police officers have much more difficulty 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 denials in this program and for good reason

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Seventh, in this program visas go to individuals who can not get them any kind of other method and to people whose organized investment is really less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Let me broaden on one of my observations.


My estimate based upon the investors' eco-friendly card applications submitted 2 years after the first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not supply the type of data that we can use on this.


So for every $100 of boosted international investment that year, the EB program added one dime. Under a much more wobbly analytical base, the initial applications of would-be immigrant financiers, USCIS is telling reporters that the degree of 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 company's immigration practice group.




Divine offered as Chief Guidance of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Replacement Director. He has worked thoroughly with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Association to Invest in United States, the national sector organization of local.


Divine, we are delighted 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, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration every year to read more the United States. It is not near that yet, however it is expanding and getting towards that. Specifically as USCIS, the firm that manages the program, has actually been making the guidelines clearer and the procedures a lot more logical and clear for the individuals that are organizing investments and for the financiers that are spending, even more people have actually been eager and able to put effort and money right into the process to discover great tasks and establish them, and then extra investors have been ready to spend their money and take the danger and utilize the cash to develop the tasks that is the factor of the program.

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These projects do not wait around forever, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The regional facility part of the program is not. It becomes part of an appropriations costs that was established 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 procedure takes a good while to function up a task and afterwards to get the financiers approved. And they do not want their money streaming with up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the growth of jobs.

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I would love to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 regulation that is part of the code. It simply is a truth that the majority of the regional centers that are pooling investments have set those in areas of high unemployment or in backwoods where half- million-dollar financial investments are enabled, and that makes good sense.