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The program is placed in an extremely weird and non-helpful bureaucratic place for the stimulation of worldwide investment in the United States. Second, its range is all wrong. We are distributing excessive for also small of a financial investment. Better, increasing equity capital fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional facilities, with their half-million plans, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, must be about producing company entities, not passive investments. It must be regarding producing real jobs, not elaborate estimations concerning the indirect production of tasks, which is currently component of the regulation.


Perhaps that is among the reasons that it has fallen short time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too loaded with middlemen, both public and private. The program has greater than its share of rumors, which I will certainly enter into later if anybody is interested.


This is a company that loves to state yes to applicants, but as the table in my testimony shows, USCIS police officers have a lot extra trouble with EB-5 applications than others. I believe that is something that nobody has actually actually talked about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and for great reason

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Seventh, in this program visas most likely to people that might not get them otherwise and to people whose scheduled investment is really less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Allow me increase on one of my observations.


My quote based on the investors' permit applications submitted 2 years after the very first financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not offer the kind of information that we could use on this.


So for every $100 of raised international financial investment that year, the EB program contributed one cent. Under a much more shaky analytical base, the initial applications of potential immigrant investors, USCIS is telling journalists that the level of financial investment in the just-concluded year was about $1.2 here billion. Let us approve that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's migration practice group.




Divine acted as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Director. He has worked extensively with the EB-5 program in personal method. He was chosen, as I understand, vice head of state of the Association to Invest in USA, the national market organization of regional.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the migration annually to the USA. It is not near that yet, however it is growing and getting toward that. Specifically as USCIS, the agency that manages the program, has actually been making the rules more clear and the processes much more logical and clear for the individuals who are arranging investments and for the financiers that are investing, even more individuals have actually been eager and able to put initiative and cash into the procedure to discover great projects and develop them, and afterwards a lot more capitalists have wanted to spend their cash and take the risk and utilize the money to produce the work that is the factor of the program.

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These projects do not linger forever, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, in truth, they prepare to refute applications that are not certifying. And they do so, as was mentioned


The local center part of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has actually been expanded 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 date of expiry in September.


The process takes a great while to develop a task and after that to get the financiers authorized. And they do not want their cash flowing through till they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the advancement of projects.

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I want to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It just is a truth that many of the local centers that are pooling investments have actually established those in areas of high joblessness or in rural locations where fifty percent- million-dollar investments are enabled, which makes feeling.