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The program is positioned in an extremely odd and non-helpful bureaucratic area for the stimulation of international investment in the United States. Second, its range is all incorrect. We are giving away way too much for too tiny of an investment. Better, raising equity capital half a million bucks a tranche is, to claim the least, ineffective.


The local centers, with their half-million systems, basically undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to be about producing company entities, not passive investments. It ought to have to do with developing genuine work, not elaborate calculations regarding the indirect creation of tasks, which is now component of the legislation.


Possibly that is one of the reasons it has stopped working every year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also loaded with intermediaries, both public and private. The program has even more than its share of detractions, which I will get involved in later if anybody is interested.


This is a company that enjoys to claim yes to applicants, yet as the table in my statement shows, USCIS police officers have far more problem with EB-5 applications than others. I believe that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and for good factor

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Seventh, in this program visas go to people who could not obtain them differently and to people whose scheduled financial investment is actually less, according to the Federal Get, than the typical mean internet worth of all American families in 2007. Let me increase on among my observations.


My estimate based on the financiers' permit applications filed 2 years after the first investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not give the type of information that we could make use of on this.


For every $100 of boosted international financial investment that year, the EB program added one dime. Under a a lot more unsteady statistical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing journalists that the degree of 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 firm's immigration practice group.




Divine acted as Principal Guidance of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and after that Acting Replacement Director. He has actually worked extensively with the EB-5 program secretive method. He was elected, as I recognize, vice head of state of the Association to Purchase United States, the nationwide industry association of more info local centers.


Divine, we are thrilled to have you below. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is expanding and getting towards that. Especially as USCIS, the firm that manages the program, has been making the policies clearer and the procedures much more rational and clear for individuals that are organizing investments and for the financiers who are spending, even more individuals have actually agreed and able to place initiative and money into the procedure to locate great projects and establish them, and after that a lot more financiers have agreed to invest their cash and take the threat and utilize the money to produce the tasks that is the point of the program.

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These tasks do not linger permanently, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, actually, they are ready to refute applications that are not qualifying. And they do so, as was pointed out


The regional center component of the program is not. It becomes part of an appropriations bill that was established in 1992, and considering that then that program has actually been prolonged five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes a good while to work up a project and afterwards to obtain the financiers accepted. And they do not want their cash moving through till they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is already preventing the development of jobs.

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I want to clear up that the Regional Center Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 regulation that is part of the code. It just is a truth that a lot of the local centers that are pooling investments have set those in places of high unemployment or in rural areas where half- million-dollar investments are enabled, which makes feeling.