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First, the program is positioned in a very weird and non-helpful bureaucratic area for the excitement of global financial investment in the United States. Second, its scale is all incorrect. We are distributing excessive for too little of an investment. Even more, raising equity capital half a million bucks a tranche is, to state the least, ineffective.


The local facilities, with their half-million systems, basically undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be concerning producing business entities, not easy investments. It should have to do with producing real tasks, not specify computations concerning the indirect development of jobs, which is currently part of the regulation.


Possibly that is just one of the reasons it has stopped working year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too filled with intermediaries, both public and private. The program has greater than its share of scandals, which I will certainly enter into later on if anybody is interested.


This is a firm that loves to state yes to candidates, however as the table in my testimony reveals, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that no one has truly discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and for excellent reason

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Seventh, in this program visas most likely to individuals that could not get them any type of other means and to people whose planned investment is actually much less, according to the Federal Reserve, than the average mean net well worth of all American family members in 2007. Allow me broaden on among my observations.


My estimate based on the investors' copyright applications submitted 2 years after the very first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not provide the kind of information that we can utilize on this.


For every $100 of increased international investment that year, the EB program contributed one dime. Under a a lot more unsteady analytical base, the first applications of prospective immigrant financiers, USCIS is informing journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the company's migration technique group.




Divine acted as Principal Advise of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Performing Supervisor, and afterwards Performing Replacement Supervisor. He has actually functioned extensively with the EB-5 program in personal practice. He was elected, as I recognize, vice head of state of the Association to Buy United States, the national market association of local facilities.


Divine, we are pleased to have you right here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, but it is expanding and obtaining toward that. Specifically as USCIS, the company that looks after the program, has been making the regulations clearer and the procedures more logical and clear for individuals who are arranging financial investments and for the capitalists who are spending, more people have been eager and able to put effort and money into the process to find great tasks and develop them, and after that more investors have wanted to spend their cash and take the risk and utilize the cash to produce the tasks that is the point of the program.

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These projects do not linger forever, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was stated


The local center part of the program is not. It is component of an appropriations bill that was passed 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 process takes an excellent while to develop a project and after that to obtain the investors accepted. And they do not desire their cash flowing with till they have been approved. And the specter of the expiry of this Regional Facility Program in September is already dissuading the growth of projects.

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I wish to clarify that the Regional Center Program is not the check here like the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a fact that many of the local facilities that are merging financial investments have set those instead of high unemployment or in backwoods where half- million-dollar investments are enabled, and that makes good sense.