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Initially, the program is placed in a very weird and non-helpful administrative location for the excitement of worldwide financial investment in the USA. Second, its range is all wrong. We are providing away way too much for as well small of an investment. Better, raising equity capital half a million bucks a tranche is, to state the least, ineffective.


The regional facilities, with their half-million plans, basically undercut the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to have to do with producing organization entities, not passive financial investments. It needs to have to do with developing actual tasks, not specify calculations about the indirect development of work, which is currently part of the legislation.


Probably that is one of the reasons it has actually failed time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also filled with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will certainly get into later on if any person is interested.


This is an agency that enjoys to say yes to candidates, yet as the table in my statement shows, USCIS officers have far more trouble with EB-5 applications than others. I think that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high prices of inner denials in this program and completely factor

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Seventh, in this program visas go to people who could not obtain them any kind of various other means and to people whose planned financial investment is really less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Let me expand on among my observations.


My quote based on the investors' eco-friendly card applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not give the sort of information that we might make use of on this.


So for every $100 of boosted foreign financial investment that year, the EB program added website one cent. Under a far more unsteady statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of financial investment in the just-concluded year was regarding $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 migration technique team.




Divine functioned as Principal Advise of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Director. He has actually worked extensively with the EB-5 program in exclusive practice. He was chosen, as I understand, vice head of state of the Organization to Spend in USA, the national sector association of regional.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 slots were utilized, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is expanding and getting towards that. Specifically as USCIS, the agency that looks after the program, has been making the rules clearer and the processes much more logical and clear for individuals who are arranging financial investments and for the investors that are investing, more people have agreed and able to place initiative and cash right into the process to locate good tasks and develop them, and after that a lot more financiers have been eager to spend their money and take the threat and use the money to create the work that is the point of the program.

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These projects do not linger for life, and USCIS understands that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, in fact, they prepare to deny applications that are not certifying. And they do so, as was mentioned


The local center component of the program is not. It is component of an appropriations expense that was passed in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes a good while to function up a project and afterwards to obtain the capitalists accepted. And they do not desire their money flowing via up until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the development of tasks.

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I would certainly like to make clear that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 regulation that is part of the code. It simply is a reality that a lot of the local facilities that are pooling financial investments have actually set those in locations of high unemployment or in country areas where fifty percent- million-dollar investments are enabled, which makes sense.