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The program is positioned in a very odd and non-helpful administrative location for the excitement of international financial investment in the United States. Second, its scale is all wrong. We are offering away too much for too small of an investment. Additionally, increasing financial backing half a million dollars a tranche is, to say the least, ineffective.


The regional facilities, with their half-million schemes, basically damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should have to do with developing company entities, not easy investments. It ought to be about producing real tasks, not specify estimations about the indirect production of jobs, which is currently part of the regulation.


Probably that is just one of the reasons that it has failed every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and personal. The program has more than its share of detractions, which I will enter into later if any person is interested.


This is an agency that loves to say yes to applicants, but as the table in my testimony reveals, USCIS police officers have a lot a lot more difficulty with EB-5 applications than others. I think that is something that nobody has really chatted about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals who might not obtain them differently and to people whose scheduled financial investment is in fact less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Let me broaden on one of my observations.


My estimate based upon the capitalists' eco-friendly card applications submitted 2 years after the initial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not supply the kind of data that we could utilize on this.


So for every single $100 of raised international financial investment that year, the EB program added one penny. Under a far more wobbly statistical base, look at here now the initial applications of potential immigrant capitalists, USCIS is informing journalists that the level of investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's immigration technique team.




Divine acted as Principal Counsel of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in personal technique. He was chosen, as I understand, vice president of the Association to Spend in U.S.A., the nationwide industry association of local.


Divine, we are thrilled 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 HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is expanding and obtaining towards that. Particularly as USCIS, the agency that manages the program, has actually been making the regulations more clear and the procedures extra rational site and clear for individuals wikipedia reference that are arranging investments and for the investors who are spending, even more individuals have actually wanted and able to place initiative and cash right into the procedure to discover great jobs and establish them, and then a lot more financiers have been eager to spend their cash and take the danger and use the money to create the tasks that is the factor of the program.

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These jobs do not wait around permanently, and USCIS understands that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, in reality, they are prepared to refute applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes a good while to develop a job and afterwards to obtain the investors approved. And they do not desire their cash moving via till they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently discouraging the growth of tasks.

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I want to clarify that the Regional Facility Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It just is a reality that most of the regional facilities that are pooling investments have actually established those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, which makes sense.