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The program is positioned in a really strange and non-helpful bureaucratic place for the stimulation of international financial investment in the United States. Second, its range is all incorrect. We are handing out excessive for as well tiny of an investment. Additionally, elevating equity capital half a million dollars a tranche is, to claim the least, inefficient.


The local centers, with their half-million plans, essentially undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, ought to have to do with producing company entities, not passive investments. It needs to be regarding producing actual tasks, not specify estimations regarding the indirect creation of jobs, which is now component of the regulation.


Possibly that is among the reasons why it has stopped working time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will get involved in later if anybody is interested.


This is a firm that likes to state yes to candidates, however as the table in my testimony reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually actually discussed much. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to people that could not obtain them otherwise and to individuals whose scheduled investment is really much less, according to the Federal Get, than the typical mean net worth of all American households in 2007. Allow me increase on among my monitorings.


My quote based on the investors' environment-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not offer the sort of information that we can use on this.


For every $100 of raised foreign investment that year, the EB program contributed one dime. Under a far more shaky statistical base, the preliminary applications of potential immigrant capitalists, USCIS is more helpful hints telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's migration technique team.




Divine acted as Principal Advise of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Supervisor. He has functioned extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Association to Invest in U.S.A., the nationwide sector association of regional facilities.


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


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration each year to the USA. It is not near that yet, yet it is expanding and getting towards that. Particularly as USCIS, the firm that supervises the program, has been making the guidelines more clear and the processes more rational and clear for the people who are arranging investments and for the investors who are investing, even more people have wanted and able to put effort and money into the process to locate excellent projects and establish them, and after that much more financiers have wanted to spend their money and take the risk and utilize the cash to create the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS recognizes index that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, in fact, they prepare to refute applications that are not qualifying. And they do so, as was mentioned


The regional center component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and because then that program has been expanded 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 of expiry in September.


The process takes a good while to develop a job and afterwards to get the capitalists approved. And they do not want their cash moving with till they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already inhibiting the advancement of tasks.

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I would such as to clear up that the Regional Center Program his response is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 legislation that becomes part of the code. It simply is a fact that the majority of the local centers that are pooling financial investments have established those in places of high unemployment or in country locations where half- million-dollar financial investments are allowed, and that makes good sense.