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First, the program is put in a really strange and non-helpful administrative area for the excitement of international financial investment in the United States. Second, its range is all incorrect. We are handing out excessive for as well tiny of an investment. Even more, increasing equity capital half a million dollars a tranche is, to say the least, ineffective.


The local centers, with their half-million plans, essentially damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must have to do with producing service entities, not passive financial investments. It must be about developing genuine work, not clarify calculations regarding the indirect creation of tasks, which is now component of the regulations.


Possibly that is one of the reasons why it has actually stopped working year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter later on if anyone is interested.


This is an agency that loves to claim yes to candidates, however as the table in my statement shows, USCIS policemans have much extra trouble with EB-5 applications than others. I believe that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high prices of internal rejections in this program and forever factor

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Seventh, in this program visas go to individuals who might not obtain them otherwise and to individuals whose scheduled investment is really less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me expand on among my observations.


My estimate based on the capitalists' environment-friendly card applications submitted 2 years after the initial financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not provide the type of data that we might make use of on this.


For every $100 of enhanced foreign financial investment that year, the EB program added one penny. Under a much more shaky analytical base, the preliminary applications of potential immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's migration practice team.




Divine worked as Chief Advise of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and after that Acting Replacement Director. He has actually worked extensively with the EB-5 program secretive method. He was elected, as I recognize, vice president of the Organization to Buy USA, the nationwide sector association of local centers.


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


At a lot of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, but it is expanding and getting toward that. Specifically as USCIS, the company that looks after the program, has actually been making the rules more clear and the procedures a lot more sensible and clear for the people more info that are arranging investments and for the financiers that are investing, more individuals have wanted and able to place initiative and money right into the process to locate excellent tasks and create them, and after that much more financiers have actually wanted to spend their cash and take the risk and use the cash to produce the jobs that is the factor of the program.

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These jobs do not linger permanently, and USCIS understands that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, in reality, they are all set to deny applications that are not qualifying. And they do so, as was mentioned


The regional facility component of the program is not. It is component of an appropriations costs that was passed in 1992, and ever since that program has actually 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 date of expiry in September.


The procedure takes a good while to develop a project and then to get the investors accepted. And they do not want their cash moving via up until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is already discouraging the growth of projects.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar thing. The idea 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 reality that most of the regional centers that are pooling financial investments have established those in places of high unemployment or in country locations where fifty percent- million-dollar investments are permitted, which makes good sense.