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First, the program is positioned in a really weird and non-helpful governmental area for the excitement of worldwide financial investment in the United States. Second, its range is all incorrect. We are handing out excessive for too small of an investment. Additionally, increasing equity capital fifty percent a million bucks a tranche is, to claim the least, inefficient.


The regional facilities, with their half-million systems, essentially undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should be regarding creating company entities, not easy financial investments. It should have to do with creating actual jobs, not clarify calculations regarding the indirect production of jobs, which is currently part of the legislation.


Possibly that is one of the reasons it has stopped working year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too full of middlemen, both public and exclusive. The program has greater than its share of rumors, which I will enter into later on if any person is interested.


This is a company that likes to state yes to applicants, yet as the table in my testimony shows, USCIS officers have far more problem with EB-5 applications than others. I believe that is something that nobody has actually actually spoken about much. EB5 Regional Center Program. There are high prices of interior rejections in this program and completely reason

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Seventh, in this program visas go to individuals who could not get them any various other way and to people whose scheduled investment is really less, according to the Federal Get, than the typical mean net worth of all American households in 2007. Allow me broaden on one of my observations.


My quote based on the financiers' environment-friendly card applications submitted 2 years after the initial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not provide the kind of data that we might use on this.


So for every $100 of raised foreign financial investment that year, the EB program contributed one penny. Under a much more unsteady analytical base, the first applications of would-be immigrant financiers, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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




Divine offered as Chief Advise of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Supervisor. He has worked extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Organization to Spend in U.S.A., the nationwide market association of local centers.


Divine, we are thrilled to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is growing and obtaining toward that. Particularly as USCIS, the firm that supervises the program, has actually been making the regulations clearer and the procedures much more logical and clear for individuals that are organizing financial investments and for the capitalists who are investing, even more individuals have actually agreed and able to place effort and cash right into the procedure to locate great tasks and develop them, and after that more investors have been eager to invest their money and take the danger and make use of the cash to develop the jobs that is the factor of the program.

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These tasks do not wait about forever, and USCIS comprehends 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, actually, they are all set to refute applications that are not qualifying. And they do so, as was stated


The local center component of the program is not. It becomes part of an appropriations bill that was established website in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to develop a project and after that to get the financiers authorized. And they do not want their cash moving through until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently preventing the advancement of projects.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 regulation that is component of the code. It simply is a truth that a lot of the regional facilities that are pooling investments have actually established those in locations of high unemployment or in country areas where fifty percent- million-dollar investments are enabled, which makes good sense.