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Initially, the program is placed in an extremely weird and non-helpful bureaucratic place for the excitement of international financial investment in the USA. Second, its scale is all incorrect. We are handing out way too much for too tiny of a financial investment. Further, raising financial backing half a million dollars a tranche is, to state the least, ineffective.


The regional facilities, with their half-million plans, basically undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be regarding developing service entities, not passive financial investments. It ought to be concerning producing real work, not clarify calculations concerning the indirect production of tasks, which is now part of the regulation.


Maybe that is just one of the reasons it has actually failed year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also full of intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter later on if any person is interested.


This is an agency that likes to state yes to candidates, but as the table in my statement reveals, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever reason

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Seventh, in this program visas go to individuals who could not get them differently and to people whose planned investment is actually much less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Let me broaden on one of my observations.


My estimate based on the capitalists' environment-friendly card applications submitted 2 years after the very first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not provide the sort of information that we might use on this.


So for every $100 of increased international financial investment that year, the EB program contributed one dime. Under a a lot more shaky analytical base, the first applications of potential immigrant investors, USCIS is telling reporters that the level of financial investment in the just-concluded year was regarding $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 company's migration practice team.




Divine worked as Principal Advice of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and after that Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program in exclusive method. He was elected, as I understand, vice head of state of the Organization to Spend in USA, the nationwide industry organization of regional centers.


STATEMENT OF ROBERT C. DIVINE, LAWYER, 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, Legislator Grassley, and others.


At many, if all 10,000 ports were made use of, it would be 1 percent of the migration each year to the United States. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the agency that manages the program, has actually been making the guidelines more clear and the procedures more reasonable and clear for individuals that are organizing financial investments and for the capitalists who are spending, even more individuals have wanted and able to place initiative and cash into the process to locate good jobs and create them, and then a lot more capitalists have agreed to spend their cash and take the threat and use the money to produce the tasks that is the point of the program.

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These jobs do not wait about forever, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, in truth, they are all set to refute applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It is component of an appropriations costs that was established in 1992, and since then that program has actually been prolonged five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to work up a project and after that to get the financiers accepted. And they do not want their money flowing with up until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is currently preventing the development of projects.

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I want to clear up that the Regional Center Program is not the same as the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 legislation that belongs to the more info code. It simply is a truth that a lot of the local centers that are pooling investments have actually established those in places of high unemployment or in backwoods where half- million-dollar investments are enabled, and that makes good sense.