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First, the program is placed in a very strange and non-helpful administrative location for the stimulation of international financial investment in the USA. Second, its scale is all wrong. We are handing out way too much for too little of an investment. Better, increasing equity capital half a million bucks a tranche is, to claim the least, ineffective.


The regional centers, with their half-million plans, essentially undercut the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with developing business entities, not easy investments. It needs to be regarding developing genuine tasks, not clarify calculations about the indirect production of jobs, which is currently part of the regulations.


Perhaps that is just one of the reasons that it has actually failed year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of middlemen, both public and private. The program has more than its share of scandals, which I will certainly enter later on if any person is interested.


This is a company that loves to claim yes to candidates, yet as the table in my statement shows, USCIS policemans have much extra difficulty with EB-5 applications than others. I assume that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely reason

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Seventh, in this program visas go to individuals that can not get them differently and to individuals whose scheduled 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 increase on one of my monitorings.


My price quote based on the financiers' permit applications submitted 2 years after the initial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not offer the sort of data that we can utilize on this.


So for every $100 of raised international financial investment that year, the EB program contributed one penny. Under a far more shaky analytical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $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 company's migration practice group.




Divine worked as Chief Counsel of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Replacement Director. He has actually worked thoroughly with the EB-5 program secretive practice. He was elected, as I recognize, vice head of state of the Association to Spend in U.S.A., the national industry association of regional facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. like this (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 ports were made use of, it would be 1 percent of the migration yearly to the United States. It is not near that yet, however it is expanding and obtaining toward that. Especially as USCIS, the agency that manages the program, has been making the regulations clearer and the procedures much more logical and clear for individuals who are organizing investments and for the capitalists who are spending, even more people have been willing and able to place initiative and money into the procedure to locate good projects and create them, and then extra capitalists have actually been eager to spend their cash and take the danger and utilize the cash to develop the work that is the point of the program.

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These projects do not wait around for life, and USCIS comprehends that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, in reality, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The local center component of the program is not. It is component of an appropriations bill that was established in 1992, and ever since that program has been expanded 5 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 expiration in read September.


The process takes an excellent while to develop a project and after that to get the financiers approved. And they do right here not desire their cash moving with until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the advancement of projects.

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I want to clear up that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It simply is a truth that a lot of the regional centers that are pooling investments have established those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes feeling.