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First, the program is placed in a really odd and non-helpful administrative location for the stimulation of global investment in the United States. Second, its range is all incorrect. We are giving away way too much for also small of an investment. Better, increasing equity capital half a million bucks a tranche is, to say the least, ineffective.


The regional facilities, with their half-million schemes, essentially damaged the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to be regarding developing service entities, not easy investments. It must have to do with developing real jobs, not elaborate estimations about the indirect creation of tasks, which is now component of the regulation.


Maybe that is just one of the reasons why it has stopped working year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also loaded with intermediaries, both public and exclusive. The program has even more than its share of rumors, which I will certainly enter later on if anyone is interested.


This is a company that enjoys to state yes to applicants, but as the table in my statement reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and for great reason

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Seventh, in this program visas most likely to people who could not get them any type of other method and to individuals whose planned financial investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me expand on among my observations.


My quote based on the financiers' permit applications filed 2 years after the first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not provide the sort of information that we might make use of on this.


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

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




Divine offered as Principal Guidance of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has actually worked extensively with the EB-5 program secretive practice. He was elected, as I comprehend, vice president of the Organization to Spend in United States, the national market association of local facilities.


Divine, we are pleased to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you more info for having me.


At the majority of, if all 10,000 slots were used, it would be 1 percent of the migration each year to the United States. It is not near that yet, however it is expanding and getting towards that. Specifically as USCIS, the firm that oversees the program, has been making the policies more clear and the procedures more logical and clear for the individuals who are organizing investments and for the financiers that are investing, even more people have actually been eager and able to put initiative and money into the procedure to find good jobs and create them, and then extra investors have agreed to spend their cash and take the risk and make use of the cash to produce the jobs that is the factor of the program.

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These jobs do not wait around permanently, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, in fact, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It is part of an appropriations costs that was enacted in 1992, and since then 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 procedure takes an excellent while to develop a project and then to get the capitalists accepted. And they do not desire their cash streaming through until they have been authorized. And the specter of the expiry of this Regional Center Program in September is already inhibiting the advancement of jobs.

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I wish to make clear that the Regional Center Program is not the like the half-million-dollar thing. 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 the majority of the regional facilities that are merging investments have established those instead of high joblessness or in country areas where fifty percent- million-dollar investments are permitted, and that makes good sense.