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The program is put in a very strange and non-helpful administrative location for the excitement of international financial investment in the United States. Second, its scale is all incorrect. We are handing out too much for too little of an investment. Additionally, raising equity capital fifty percent a million bucks a tranche is, to say the least, inefficient.

The regional facilities, with their half-million systems, essentially damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to be regarding creating service entities, not easy financial investments. It ought to be concerning developing genuine tasks, not clarify calculations concerning the indirect creation of tasks, which is currently component of the legislation.


Possibly that is among the factors why it has actually failed year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with intermediaries, both public and private. The program has more than its share of detractions, which I will certainly get involved in later on if any person is interested.


This is a company that loves to say yes to applicants, but as the table in my testimony reveals, USCIS police officers have much more problem with EB-5 applications than others. I believe that is something that no one has really discussed 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 most likely to individuals that can not get them any other method and to individuals whose scheduled investment is actually less, according to the Federal Reserve, than the ordinary mean web well worth of all American families in 2007. Allow me broaden on one of my monitorings.


My price quote based upon the capitalists' permit applications submitted 2 years after the initial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not offer the type of information that we might utilize on this.


For every $100 of increased international financial investment that year, the EB program added one cent. Under a much a lot more wobbly analytical base, the preliminary applications of potential immigrant investors, USCIS is telling journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve 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 worked as Principal Advice of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in personal practice. He was elected, as I recognize, vice head of state of the Association to Invest in United States, the nationwide industry organization of local.


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


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, however it is expanding and getting towards that. Specifically as USCIS, the firm that manages the program, has been making the policies more clear and the procedures more reasonable and clear for the people that are arranging investments and for the financiers that are investing, more people have actually agreed and able to place initiative and EB5 Regional Center Program cash into the process to discover good jobs and create them, and after that more capitalists have been prepared to spend their money and take the threat and use the cash to develop the jobs that is the point of the program.

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These projects do not wait about permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was pointed out

The local center component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a great while to develop a project and after that to get the financiers approved. And they do not desire their cash streaming via up until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already discouraging the development of projects.

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I would certainly like to clear up that the Regional Facility Program is not the exact 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 is part of the code. It simply is a fact that most of the regional facilities that are merging financial investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, and that makes good sense.