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Initially, the program is placed in a really strange and non-helpful bureaucratic area for the stimulation of worldwide investment in the USA. Second, its range is all wrong. We are distributing excessive for also little of a financial investment. Better, raising venture resources half a million dollars a tranche is, to say the least, ineffective.


The local facilities, with their half-million systems, essentially damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, ought to be about creating company entities, not passive investments. It should have to do with creating real jobs, not elaborate estimations regarding the indirect development of work, which is currently component of the regulation.


Maybe that is one of the reasons it has actually failed every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center 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 obtain into later on if anybody is interested.


This is a company that enjoys to say yes to applicants, yet as the table in my testimony shows, USCIS police officers have far more problem with EB-5 applications than others. I think that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for excellent factor

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Seventh, in this program visas most likely to individuals who might not obtain them differently and to people whose scheduled financial investment is in fact much less, according to the Federal Get, than the average mean total assets of all American households in 2007. Let me increase on one of my observations.


My quote based upon the investors' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not give the sort of information that we might make use of on this.


For every $100 of enhanced international investment that year, the EB program added one cent. Under a far more shaky analytical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $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 company's migration method group.




Divine functioned as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in personal practice. He was chosen, as I comprehend, vice head of state of the Association to Invest in U.S.A., the national market association of local.


Divine, we are pleased to have you below. Please go on, 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. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, but it is expanding and obtaining towards that. Specifically as USCIS, the agency that looks after the program, has been making the rules more clear and the procedures extra reasonable and clear for the people that are organizing investments and for the financiers that are investing, more people have actually wanted and able to put effort and cash right into here the procedure to find great jobs and create them, and after that much more financiers have actually agreed to invest their money and take the danger and utilize the cash to create the tasks that is the factor of the program.

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These projects do not linger forever, and USCIS comprehends that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The regional center component of the program is not. It belongs to an appropriations bill that was established in 1992, and because then that program has actually been expanded 5 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 expiry in September.


The procedure takes a good while to develop a task and afterwards to obtain the capitalists approved. And they do not desire their cash flowing with till they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already inhibiting the development of jobs.

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I would like to clarify 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 function of the regular EB-5 law that becomes part of the code. It just is a reality that most of the local facilities that are pooling investments have set those in areas of high unemployment or in backwoods where half- million-dollar financial investments are enabled, which makes good sense.