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First, the program is put in a really strange and non-helpful governmental area for the excitement of worldwide financial investment in the United States. Second, its range is all wrong. We are handing out excessive for also little of an investment. Even more, increasing equity capital half a million dollars a tranche is, to say the least, inefficient.


The regional centers, with their half-million systems, basically undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to have to do with developing service entities, not easy investments. It needs to be about producing actual work, not clarify calculations about the indirect creation of work, which is now component of the regulation.


Probably that is just one of the factors why it has fallen short every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well full of intermediaries, both public and personal. The program has greater than its share of scandals, which I will enter into later on if anybody is interested.


This is a firm that enjoys to state yes to candidates, but as the table in my testimony shows, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that no one has really spoken about much. EB5 Regional Center Program. There are high prices of inner denials in this program and permanently reason

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Seventh, in this program visas go to individuals who could not obtain them differently and to individuals whose planned financial investment is actually much less, according to the Federal Get, than the ordinary mean net worth of all American families in 2007. Allow me increase on one of my monitorings.


My estimate based upon the financiers' environment-friendly card applications submitted 2 years after the very first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not provide the sort of information that we could utilize on this.


So for every $100 of enhanced foreign financial investment that year, the EB program contributed one dime. Under a much a lot more unsteady analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $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 company's migration technique team.




Divine functioned as Principal Guidance of the United States Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Director. He has actually worked extensively with the EB-5 program secretive method. He was elected, as I comprehend, vice head of state of the Association to Spend in USA, the nationwide market association of local.


Divine, we are pleased to have you below. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is expanding and obtaining towards that. Especially as USCIS, the agency that manages the program, has been making the rules more clear and the procedures more rational and clear for individuals that are arranging investments and for the financiers that are spending, more people have been ready and able to place effort and cash right into the process to locate great projects and establish them, and afterwards more financiers have been willing to invest their cash and take the risk and make use of the cash to create the work that is the point of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, actually, they prepare to reject applications that are not certifying. And they do so, as was stated


The regional center part of the program is not. It becomes part of an appropriations costs that was passed in 1992, and because then that program has been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes a great while to develop a project and after that to get the capitalists approved. And they do not desire their cash streaming with up until they have been accepted. And the specter more info of the expiry of this Regional Center Program in September is already dissuading the advancement of jobs.

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I would love to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It just is a reality that most of the local facilities that are pooling financial investments have actually established those instead of high unemployment or in country areas where half- million-dollar financial investments are enabled, and that makes sense.