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The program is put in a really strange and non-helpful administrative area for the stimulation of global investment in the United States. Second, its scale is all wrong. We are distributing way too much for as well tiny of an investment. Even more, elevating venture capital half a million dollars a tranche is, to state the least, inefficient.


The regional facilities, with their half-million schemes, essentially undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should be about creating company entities, not easy investments. It must have to do with developing real jobs, not clarify estimations regarding the indirect production of tasks, which is now part of the regulation.


Perhaps that is one of the reasons it has failed every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also full of middlemen, both public and personal. The program has greater than its share of scandals, which I will get involved in later if anybody is interested.


This is a firm that likes to claim yes to applicants, however as the table in my testimony shows, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently factor

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Seventh, in this program visas most likely to people that might not get them differently and to people whose organized financial investment is really less, according to the Federal Reserve, than the ordinary mean internet well worth of all American families in 2007. Allow me increase on one of my observations.


My price quote based on the capitalists' permit applications submitted 2 years after the very first investment-- these are the strong 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 offer the sort of data that we could utilize on this.


So for every $100 of increased foreign financial investment that year, the EB program added one penny. Under a far more unsteady statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing reporters that the degree of financial investment in the just-concluded navigate here year was regarding $1.2 billion. Let us approve that.

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




Divine acted as Principal Guidance of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Replacement Director. He has actually functioned extensively with the EB-5 program in private technique. He was elected, as I recognize, vice head of state of the Association to Purchase U.S.A., the page national industry association of local centers.


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


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the company that supervises the program, has actually been making the rules more clear and the processes a lot more logical and clear for individuals that are organizing financial investments and for the capitalists who are investing, even more individuals have actually been eager and able to place effort and money into the process to find great tasks and create them, and afterwards extra capitalists have agreed to invest their money and take the threat and make use of 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 understands that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, in reality, they prepare to refute applications that are not qualifying. And they do so, as was pointed out


The local review center component of the program is not. It is part of an appropriations expense that was established in 1992, and ever since that program has been extended 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 date of expiration in September.


The process takes a great while to develop a project and after that to get the financiers accepted. And they do not desire their cash moving through until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the advancement of tasks.

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I want to clear up 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 feature of the regular EB-5 law that becomes part of the code. It just is a truth that a lot of the regional facilities that are merging financial investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, and that makes feeling.