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The program is put in an extremely strange and non-helpful governmental area for the stimulation of global financial investment in the United States. Second, its range is all wrong. We are handing out excessive for also small of an investment. Better, raising equity capital fifty percent a million bucks a tranche is, to claim the least, ineffective.


The regional facilities, with their half-million plans, essentially damaged the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must be regarding creating organization entities, not passive investments. It needs to be regarding producing real jobs, not specify estimations concerning the indirect creation of jobs, which is now part of the legislation.


Possibly that is one of the reasons that it has stopped working every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of intermediaries, both public and private. The program has more than its share of rumors, which I will certainly obtain into later if any person is interested.


This is an agency that loves to say yes to candidates, yet as the table in my testimony reveals, USCIS police officers have far more problem with EB-5 applications than others. I think that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals that might not get them any type of various other way and to individuals whose scheduled financial investment is actually less, according to the Federal Get, than the ordinary mean net worth of all American family members in 2007. Let me expand on among my monitorings.


My price quote based on the investors' copyright applications submitted 2 years after the very first 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 estimate. USCIS does not offer the sort of information that we might use on this.


For every $100 of raised international financial investment that year, the EB program contributed one penny. Under a much more wobbly analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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




Divine worked as Chief Counsel of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and then Performing Replacement Supervisor. He has functioned extensively with the EB-5 program secretive method. He was chosen, as I recognize, vice head of state of the Association to Spend in USA, the national sector organization of regional.


Divine, we are pleased to have you right here. Please go ahead, sir. 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. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is expanding and getting towards that. Specifically as USCIS, the agency that oversees the program, has actually been making the policies clearer and the procedures more logical and clear for the people who are organizing investments and for the financiers that are spending, more individuals have agreed and able to place initiative and cash into the procedure to discover good projects and develop them, and after that more capitalists have wanted to spend their money and take the danger and use the cash to create the tasks that is the factor of the program.

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These jobs do not wait about for life, and USCIS recognizes that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, in truth, they are all set to reject applications that are not certifying. And they do so, as was pointed out


The local facility part of the program is not. It is part of an appropriations bill that was passed in 1992, and considering that then that program has actually been expanded 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes a good while to develop a job and afterwards to get the capitalists approved. And they do not want their cash streaming via up until they have actually been approved. And the specter of the expiry of this Regional Facility 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 concept of half a million or a million is a function of the routine EB-5 law that belongs to the code. It just is a fact that a lot of click here the regional facilities that are merging financial investments have set those instead of high joblessness or in rural locations where fifty percent- million-dollar investments are enabled, which makes feeling.