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The program is put in a very odd and non-helpful administrative place for the excitement of international financial investment in the United States. Second, its range is all incorrect. We are providing away way too much for as well little of a financial investment. Additionally, raising equity capital fifty percent a million dollars a tranche is, to claim the least, ineffective.


The local centers, with their half-million plans, essentially damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should be regarding producing organization entities, not passive investments. It must have to do with creating genuine tasks, not elaborate estimations about the indirect creation of tasks, which is currently component of the regulation.


Maybe that is just one of the reasons that it has stopped working year after year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with intermediaries, both public and personal. The program has greater than its share of detractions, which I will certainly obtain right into later if any person is interested.


This is a firm that likes to claim yes to candidates, however as the table in my testimony reveals, USCIS police officers have a lot more problem with EB-5 applications than others. I think that is something that nobody has actually truly chatted around much. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently reason

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Seventh, in this program visas go to individuals that could not get them any kind of various other means and to people whose scheduled financial investment is actually much less, according to the Federal Reserve, than the average mean internet well worth of all American families in 2007. Let me expand on one of my observations.


My price quote based upon the investors' permit applications submitted 2 years after the initial financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not offer the kind of information that we can use on this.


So for every $100 of raised foreign financial investment that year, the EB program added one cent. Under a a lot more unsteady statistical base, the initial applications of would-be immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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




Divine worked as Principal Advise of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Director. He has actually worked extensively with the EB-5 program in private practice. He was chosen, as I comprehend, vice president of the Organization to Spend in U.S.A., the national industry organization of regional facilities.


Divine, we are delighted to have you right here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were utilized, it would be 1 percent of the migration yearly to the United States. It is not near that yet, but it is expanding and obtaining toward that. Especially as USCIS, the firm that manages the program, has actually been making the rules clearer and the processes much more sensible and clear for individuals that are organizing investments and for the investors that are investing, even more people have wanted and able to put effort and cash right into the process to discover excellent projects and create them, and then more financiers have actually been ready to spend their money and take the threat and utilize the cash to develop the work that is the point of the program.

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These tasks do not wait around forever, and USCIS understands that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, as a matter of fact, they are ready to reject applications that are not certifying. And they do so, as was pointed out


The regional facility component of the program is not. It belongs to an appropriations expense that was enacted in 1992, and considering that then that program has actually been extended 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 date of expiry in click here September.


The process takes a great while to work up a job and after that to get the financiers accepted. And they do not want their money streaming through till they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is already preventing the growth of projects.

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I want to make clear that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 law that becomes part of the code. It just is a reality that many of the regional centers that are merging financial investments have set those instead of high unemployment or in country locations where half- million-dollar investments are enabled, and that makes feeling.