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First, the program is positioned in an extremely weird and non-helpful bureaucratic place for the stimulation of international investment in the USA. Second, its scale is all wrong. We are giving away as well much for too little of a financial investment. Better, elevating equity capital half a million dollars a tranche is, to claim the least, inefficient.


The regional facilities, with their half-million systems, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should have to do with developing organization entities, not easy financial investments. It should have to do with creating genuine work, not clarify calculations concerning the indirect production of jobs, which is currently component of the legislation.


Maybe that is among the reasons it has fallen short year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with intermediaries, both public and personal. The program has even more than its share of scandals, which I will enter into later if anyone is interested.


This is a firm that loves to claim yes to candidates, but as the table in my statement reveals, USCIS officers have a lot a lot more problem with EB-5 applications than others. I think that is something that nobody has actually really spoken around a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and for excellent factor

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Seventh, in this program visas go to individuals that might not get them any type of various other means and to people whose scheduled investment is really much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Allow me broaden on among my observations.


My price quote based upon the investors' permit applications filed 2 years after the first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not give the sort of information that we can use on this.


So for every $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a a lot more shaky statistical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's immigration practice group.




Divine functioned as Principal Advise of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in personal method. He was chosen, as I understand, vice head of state of the Organization to Purchase U.S.A., the national sector association of local centers.


Divine, we are happy 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 HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the Your Domain Name immigration annually to the United States. It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the firm that oversees the program, has actually been making the guidelines more clear and the procedures much more reasonable and clear for individuals who are arranging financial investments and for the investors that are spending, even more individuals have actually wanted and able to place initiative and money right into the procedure to locate excellent tasks and establish them, and after that extra financiers have wanted to spend their cash and take the risk and make use of the money to produce the tasks that is the factor of the program.

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These jobs do not linger forever, and USCIS understands that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, in reality, they prepare to refute applications that are not qualifying. And they do so, as was pointed out


The local center part of the program is not. It is component of an appropriations bill that was enacted in 1992, and given that then that program has been prolonged 5 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 procedure takes a good while to develop a project and after that to obtain the investors approved. And they do not desire their cash moving through up until they have actually been have a peek here accepted. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the development of tasks.

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I would like to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a fact my company that a lot of the local facilities that are pooling financial investments have actually established those instead of high joblessness or in country locations where half- million-dollar investments are permitted, and that makes feeling.