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First, the program is put in a very odd and non-helpful bureaucratic place for the excitement of worldwide financial investment in the USA. Second, its range is all wrong. We are handing out excessive for also little of an investment. Further, elevating endeavor funding fifty percent a million dollars a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million systems, basically damaged the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, should be concerning developing company entities, not passive financial investments. It ought to be concerning producing real work, not clarify computations about the indirect production of tasks, which is now part of the regulation.


Maybe that is just one of the reasons that it has actually failed time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also full of middlemen, both public and personal. 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 enjoys to state yes to candidates, however as the table in my testimony reveals, USCIS officers have far more trouble with EB-5 applications than others. I assume that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently reason

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Seventh, in this program visas go to people who can not obtain them differently and to people whose planned investment is in fact much less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Allow me broaden on one of my observations.


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


For every $100 of raised international investment that year, the EB program contributed one penny. Under a far more shaky analytical website base, the initial applications of potential immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $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 company's immigration practice group.




Divine functioned as Principal Advice of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Director, and then Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Association to Buy United States, the national sector association of regional facilities.


Divine, we are thrilled to have you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, but it is expanding and obtaining toward that. Specifically as USCIS, the company that supervises the program, has actually been making the guidelines clearer and the procedures extra reasonable and clear for the people that are organizing investments and for the capitalists that are investing, even more individuals have been willing and able to put initiative and money right into the process to discover excellent projects and create them, and afterwards a lot more financiers have wanted to invest their money and take the danger and make use of the money to develop the tasks that is the point of the program.

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These projects do not wait around forever, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was stated


The local center component of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The procedure takes an excellent while to develop a task and after that to get the investors accepted. And they do not desire their money moving with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already dissuading the development of projects.

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I want to clarify that the Regional Center Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 legislation that is component of the code. It just is a truth that a lot of the regional facilities that are pooling investments have actually established those in places of high unemployment or in backwoods where half- million-dollar financial investments are allowed, and that makes sense.