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The program is placed in a very weird and non-helpful administrative area for the stimulation of worldwide investment in the United States. Second, its scale is all incorrect. We are handing out excessive for too small of an investment. Further, raising equity capital half a million dollars a tranche is, to state the least, inefficient.


The regional centers, with their half-million plans, essentially undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must be regarding developing company entities, not passive investments. It must be about developing actual work, not elaborate estimations about the indirect creation of tasks, which is currently part of the regulation.


Perhaps that is among the reasons that it has actually failed year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of intermediaries, both public and exclusive. The program has more than its share of detractions, which I will obtain right into later on if any person is interested.


This is a company that loves to say yes to applicants, yet as the table in my testimony reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and permanently reason

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Seventh, in this program visas go to people that could not get them any kind of other method and to individuals whose planned financial investment is really much less, according to the Federal Book, than the ordinary mean net well worth of all American families in 2007. Let me broaden on one of my observations.


My quote based on the capitalists' environment-friendly card applications filed 2 years after the very first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the sort of data that we might utilize on this.


So for each $100 of raised foreign investment that year, the EB program added one dime. Under a much more unsteady statistical base, the initial applications of potential immigrant investors, USCIS is telling journalists that the degree of financial investment in the just-concluded year was about $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 migration method team.




Divine acted as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in personal technique. He was chosen, as I understand, vice president of the Organization to Spend in United States, the national sector organization of local.


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


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and obtaining toward that. Particularly as USCIS, the agency that oversees the program, has actually been making the rules clearer and the processes much more logical and clear for individuals who are organizing financial investments and for the capitalists that are spending, even more people have wanted and able to place initiative and cash into the process to locate excellent tasks and create them, and after that much more capitalists have actually agreed to invest their money and take the threat and use the EB5 Regional Center Program cash to create the tasks that is the factor of the program.

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These projects do not linger for life, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, in reality, they are prepared to deny applications that are not qualifying. And they do so, as was pointed out


The regional center part of the program is not. It is part of an appropriations bill that was passed in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a great while to develop a job and afterwards to obtain the investors authorized. And they do not desire their money moving with until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the development of jobs.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 legislation that is part of the code. It simply is a fact that the majority of the local centers that are pooling investments have set those instead of high joblessness or in rural areas where fifty percent- million-dollar investments are permitted, and that makes feeling.