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First, the program is positioned in a really odd and non-helpful administrative area for the stimulation of worldwide financial investment in the United States. Second, its range is all wrong. We are distributing way too much for too little of an investment. Better, raising venture capital half a million bucks a tranche is, to state the least, ineffective.


The local facilities, with their half-million plans, basically damaged the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with producing company entities, not passive financial investments. It must have to do with creating actual work, not specify estimations regarding the indirect production of tasks, which is now part of the regulations.


Perhaps that is just one of the reasons why it has failed time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well filled with intermediaries, both public and personal. The program has even more than its share of rumors, which I will enter later if any person is interested.


This is an agency that likes to claim yes to applicants, however as the table in my testimony reveals, USCIS police officers have far more problem with EB-5 applications than others. I think that is something that nobody has truly discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever factor

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Seventh, in this program visas most likely to individuals who might not obtain them differently and to people whose scheduled investment is really less, according to the Federal Reserve, than the average mean net worth of all American family members in 2007. Let me broaden on among my observations.


My price quote based on the investors' environment-friendly card applications filed 2 years after the initial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not offer the sort of information that we could utilize on this.


For every $100 of increased foreign investment that year, the EB program contributed one penny. Under a much a lot more shaky analytical base, the initial applications of prospective immigrant financiers, USCIS is informing reporters that the degree of financial investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's immigration technique group.




Divine functioned as Principal Advice of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Acting Deputy Director. He has actually worked thoroughly with the EB-5 program secretive practice. He was elected, as I recognize, vice head of state of the web Organization to Invest in USA, the nationwide sector organization of regional.


Divine, we are pleased to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were utilized, it would be 1 percent of the migration yearly to the USA. It is not near that yet, however it is expanding and getting toward that. Particularly as USCIS, the company that looks after the program, has actually been making the policies more clear and the procedures a lot more logical and clear for the people that are organizing investments and for the financiers who are investing, even more individuals have actually been ready and able to place effort and cash right into the process to locate excellent tasks and establish them, and after that a lot more capitalists have actually been eager to spend their money and take the threat and make use of the money to develop the jobs that is the factor of important link the program.

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These jobs do not linger forever, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they are all set to reject applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a great while to develop a project and after that to get the financiers accepted. And they do not desire their money streaming via up until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently preventing the development of jobs.

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I would love to make clear that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 law that belongs to the code. It just is a fact that the majority of the regional centers that are merging financial investments have actually established those instead of high joblessness or in country areas where half- million-dollar financial official site investments are permitted, and that makes feeling.