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The program is placed in a very weird and non-helpful governmental location for the stimulation of international financial investment in the United States. Second, its scale is all wrong. We are handing out excessive for as well little of an investment. Better, raising financial backing half a million dollars a tranche is, to state the least, ineffective.


The regional facilities, with their half-million schemes, basically undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must be concerning producing business entities, not easy financial investments. It should have to do with producing genuine jobs, not clarify estimations concerning the indirect development of tasks, which is currently part of the regulation.


Perhaps that is among the reasons it has stopped working every year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also filled with intermediaries, both public and personal. The program has greater than its share of detractions, which I will obtain into later if any person is interested.


This is an agency that loves to claim yes to candidates, but as the table in my testimony reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I think that is something that no one has really spoken about much. EB5 Regional Center Program. There are high prices of interior rejections in this program and completely reason

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Seventh, in this program visas go to people that might not obtain them any kind of other means 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 family members in 2007. Let me increase on among my monitorings.


My quote based upon the capitalists' permit applications submitted 2 years after the first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the type of information that we could use on this.


For every $100 of raised international investment that year, the EB program contributed one cent. Under a a lot more unsteady analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $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 firm's immigration technique team.




Divine served as Principal Guidance of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Supervisor. He has worked extensively with the EB-5 program in private technique. He was elected, as I comprehend, vice president of the Association to Spend in USA, the nationwide industry association of regional.


Divine, we are pleased to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At many, if 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, however it is growing and obtaining towards that. Specifically as USCIS, the firm that supervises the program, has been making the rules more clear and the procedures extra rational and clear for individuals that are arranging financial investments and for the capitalists that are investing, even more individuals have agreed and able to put initiative and cash into the procedure to discover great jobs and establish them, and afterwards extra capitalists have wanted to spend their cash and take the danger and utilize the cash to create the tasks that is the click here point of the program.

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These projects do not linger for life, and USCIS comprehends that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The regional center part of the program is not. It is component of an appropriations bill that was passed in 1992, and since then that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes a great while to develop a project and afterwards to obtain the capitalists approved. And they do not desire their cash flowing 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 Facility Program is not the like the half-million-dollar point. 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 simply is a truth that the majority of the local facilities that are merging investments have set those in locations of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, which makes feeling.