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First, the program is put in a really strange and non-helpful bureaucratic place for the excitement of worldwide financial investment in the USA. Second, its scale is all incorrect. We are distributing also much for as well small of a financial investment. Additionally, increasing equity capital fifty percent a million dollars a tranche is, to claim the least, inefficient.


The regional facilities, with their half-million plans, basically damaged the much more sensible 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 business entities, not easy investments. It should be regarding producing real jobs, not elaborate calculations regarding the indirect creation of jobs, which is now component of the regulations.


Perhaps that is just one of the reasons why it has actually failed year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also filled up with intermediaries, both public and exclusive. The program has more than its share of scandals, which I will certainly enter into later if any person is interested.


This is a company that loves to state yes to candidates, however as the table in my statement shows, USCIS policemans have a lot more problem with EB-5 applications than others. I believe that is something that no one has actually really discussed a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely factor

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Seventh, in this program visas most likely to individuals that could not get them any type of various other way and to people whose scheduled financial investment is in fact much less, according to the Federal Reserve, than the ordinary mean total assets of all American households in 2007. Allow me expand on one of my monitorings.


My price quote based on the capitalists' copyright applications filed 2 years after the initial financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not provide the type of data that we might make use of on this.


So for each $100 of boosted foreign financial investment that year, the EB program added one cent. Under a much a lot more shaky analytical base, the initial applications of would-be immigrant financiers, USCIS is informing reporters that the degree 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 practice team.




Divine functioned as Chief Advise of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Director. He has worked extensively with the EB-5 program in private practice. He was chosen, as I comprehend, vice head of state of the Organization to Invest in United States, the national sector association of regional facilities.


DECLARATION check OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 ports were utilized, it would be 1 percent of the migration annually to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the agency that looks after the program, has actually been making the guidelines clearer and the procedures extra reasonable and clear for individuals who are arranging investments and for the financiers that are spending, even more people have actually wanted and able to place initiative and money into the process to discover excellent projects and establish them, and after that more investors have been eager to invest their money and take the risk and make use of the cash to develop the tasks that is the factor of the program.

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These jobs do not wait around for life, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they are ready to deny applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and considering that then that program has been extended 5 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 function up a job and after that to get the investors approved. And they do not desire their money moving with until they read this have been approved. And the specter of the expiry of this Regional Facility Program in website here September is already discouraging the growth of projects.

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I would love to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It just is a reality that many of the local facilities that are merging investments have established those instead of high unemployment or in backwoods where half- million-dollar financial investments are allowed, and that makes good sense.