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Initially, the program is put in an extremely strange and non-helpful administrative place for the excitement of worldwide financial investment in the USA. Second, its scale is all incorrect. We are offering away way too much for too small of an investment. Better, raising financial backing fifty percent a million bucks a tranche is, to claim the least, inefficient.


The regional centers, with their half-million plans, basically damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be about creating service entities, not easy financial investments. It needs to have to do with producing actual jobs, not elaborate calculations regarding the indirect development of tasks, which is now component of the regulations.


Maybe that is among the reasons it has failed every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also filled up with middlemen, both public and personal. The program has greater than its share of rumors, which I will enter later on if anybody is interested.


This is an agency that likes to state yes to candidates, but as the table in my testimony reveals, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high prices of internal rejections in this program and for great reason

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Seventh, in this program visas most likely to individuals that can not get them differently and to individuals whose planned investment is in fact less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Allow me broaden on among my monitorings.


My quote based on the financiers' eco-friendly card applications filed 2 years after the initial financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not give the sort of information that we can utilize on this.


For every $100 of raised international investment that year, the EB program added one penny. Under a a lot more shaky analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for here listening to me. Chairman Leahy. He is the head of the company's immigration method group.




Divine acted as Principal Advise of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Director, and then Performing Replacement Director. He has worked thoroughly with the EB-5 program in personal practice. He was chosen, as I comprehend, vice head of state of the Organization to Purchase U.S.A., the national market organization of regional facilities.


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


At a lot of, if all 10,000 ports 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 obtaining towards that. Specifically as USCIS, the company that manages the program, has actually been making the regulations clearer and the processes extra logical and clear for the individuals that are arranging investments and for the capitalists that are investing, even more individuals have wanted and able to put effort and cash right into the procedure to discover excellent tasks and establish them, and after that much more investors have been eager to spend their cash and take the threat and utilize the money to create the jobs that is the point of the program.

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These tasks do not linger for life, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, actually, they are prepared to refute applications that are not certifying. And they do so, as was discussed


The regional facility component of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and considering that then that program has been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes a great while to develop a project and after that to obtain the investors authorized. And they do not desire their cash moving through until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently preventing the development of projects.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 law that belongs to the code. It just is a fact that many of the regional facilities that are merging financial investments have set those in areas of high unemployment or in country locations where half- million-dollar financial investments are allowed, which makes feeling.