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The program is put in a really odd and non-helpful governmental area for the excitement of worldwide financial investment in the United States. Second, its scale is all incorrect. We are handing out as well much for too tiny of a financial investment. Even more, elevating equity capital fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional centers, with their half-million plans, basically damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must have to do with creating service entities, not passive financial investments. It ought to be concerning developing real work, not clarify estimations regarding the indirect production of jobs, which is now component of the legislation.


Maybe that is just one of the reasons why it has actually stopped working year after year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well full of middlemen, both public and personal. The program has more than its share of scandals, which I will enter later on if anyone is interested.


This is an agency that enjoys to state yes to candidates, but as the table in my testimony reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually truly spoken about much. EB5 Regional Center Program. There are high prices of inner denials in this program and forever factor

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Seventh, in this program visas most likely to people who could not get them otherwise and to individuals whose scheduled financial investment is really much less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Let me expand on among my observations.


My quote based on the investors' eco-friendly card applications filed 2 years after the first investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not provide the kind of information that we could use on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a much extra wobbly analytical base, the initial applications of would-be immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year was about $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 company's immigration technique group.




Divine acted as Chief Advice of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Deputy Director. He has actually worked extensively with the EB-5 program in personal method. He was elected, as I recognize, vice president of the Organization to Invest in USA, the national market organization of regional.


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


At a lot of, if all 10,000 slots were utilized, it would be 1 percent of the migration every year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Particularly as USCIS, the agency that manages the program, has been making the regulations more clear and the processes extra logical and clear for the individuals that are arranging investments and for the financiers who are investing, more people have actually wanted and able to place effort and money into the procedure to locate great jobs and create them, and after that much more capitalists have actually been ready to invest their cash and take the risk and use the money to produce the tasks that is the point of the program.

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These jobs do not wait about permanently, and USCIS recognizes that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, actually, they are ready to deny applications that are not certifying. And they do so, as was discussed


The regional facility part of the program is not. It belongs to an appropriations expense that was established in 1992, and given that then that program has been extended five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date click here of expiration in September.


The process takes a great while to function up a project and afterwards to obtain the investors authorized. And they do not desire their cash moving with until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the advancement of projects.

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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 function of the routine EB-5 law that is component of the code. It simply is a reality that the majority of the regional facilities that are merging financial investments have actually established those in locations of high joblessness or in backwoods where half- million-dollar investments are enabled, and that makes feeling.