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First, the program is placed in a really strange and non-helpful administrative place for the stimulation of global investment in the USA. Second, its scale is all incorrect. We are distributing too much for as well small of an investment. Even more, raising endeavor resources half a million bucks a tranche is, to say the least, inefficient.


The local centers, with their half-million schemes, essentially damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should be regarding producing company entities, not passive investments. It ought to be regarding developing real jobs, not clarify computations concerning the indirect creation of work, which is currently part of the regulation.


Possibly that is one of the reasons that it has failed year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too full of middlemen, both public and personal. The program has greater than its share of detractions, which I will get right into later on if any person is interested.


This is an agency that loves to state yes to candidates, however as the table in my testimony reveals, USCIS policemans have a lot a lot more trouble with EB-5 applications than others. I think that is something that nobody has really spoken around much. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals that can not get them otherwise and to individuals whose organized financial investment is in fact less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Let me broaden on among my observations.


My quote based upon the capitalists' permit applications filed 2 years after the initial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not supply the sort of information that we might utilize on this.


For every $100 of enhanced foreign investment that year, the EB program added one cent. Under a much extra wobbly analytical base, the first applications of potential immigrant financiers, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do with $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 firm's immigration practice group.




Divine acted as Principal Advise of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Supervisor. He has worked thoroughly with the EB-5 program in personal practice. He was chosen, as I recognize, vice president of the Association to Invest in U.S.A., the national industry organization of regional.


Divine, we are thrilled to have you 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 United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if browse around here all 10,000 ports were used, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and getting towards that. Particularly as USCIS, the company that manages the program, has actually been making the regulations more clear and the procedures much more reasonable and clear for the individuals that are organizing financial investments and for the investors that are spending, even more people have wanted and able to put initiative and money right into the procedure to find good projects and establish them, and after that much more capitalists have actually agreed to invest their money and take the danger and utilize the cash to produce the work that is the point of the program.

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These projects do not wait about for life, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 read here Regional Center Program. That does not imply that they are relaxing their analysis, and, actually, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The regional facility part of the program is not. It becomes part of an appropriations costs 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 irreversible, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to work up a job and after that to obtain the investors approved. And they do not want their cash streaming via till they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already preventing the growth of tasks.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that is part of the code. It just is a reality that many of the local look at more info facilities that are merging investments have set those in places of high unemployment or in country locations where half- million-dollar financial investments are permitted, and that makes sense.