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The program is placed in an extremely odd and non-helpful governmental place for the excitement of global investment in the United States. Second, its scale is all wrong. We are handing out also much for as well small of a financial investment. Better, elevating equity capital half a million dollars a tranche is, to state the least, inefficient.


The local facilities, with their half-million plans, basically undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, must be about producing service entities, not easy financial investments. It should be about creating real jobs, not clarify estimations concerning the indirect development of jobs, which is now part of the regulations.


Maybe that is among the reasons that it has stopped working year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of middlemen, both public and personal. The program has greater than its share of scandals, which I will enter later if anybody is interested.


This is an agency that enjoys to claim yes to applicants, but as the table in my testimony shows, USCIS officers have a lot extra difficulty with EB-5 applications than others. I think that is something that no one has actually really talked around much. EB5 Regional Center Program. There are high rates of internal denials in this program and for good reason

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Seventh, in this program visas most likely to people that might not obtain them otherwise and to individuals whose planned financial investment is really much less, according to the Federal Get, than the average mean net worth of all American family members in 2007. Let me broaden on one of my observations.


My price quote based on the financiers' permit applications filed 2 years after the very first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not supply the sort of information that we might utilize on this.


For every $100 of boosted international investment that year, the EB program contributed one penny. Under a much extra shaky statistical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year was about $1.2 billion. Let us get more info accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the firm's migration practice team.




Divine functioned as Principal Advise of the United States Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Director. He has worked extensively with the EB-5 program secretive practice. He was elected, as I comprehend, vice president of the Association to Invest in United States, the national industry association of regional centers.


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


At most, if all 10,000 slots were used, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is expanding and obtaining toward that. Particularly as USCIS, the agency that supervises the program, has been making the policies clearer and the processes a lot more logical and clear for individuals who are arranging investments and for the investors who are spending, even more people have agreed and able to place initiative and cash right into the process to locate great projects and establish them, and after that more capitalists have actually been eager to spend their money and take the threat and use the cash to produce the tasks that is the point of the program.

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These jobs do not wait around permanently, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they are prepared to reject applications that are not certifying. And they do so, as was pointed out


The local center component of the program is not. It belongs to an appropriations bill 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 permanent, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes an excellent while to function up a task and afterwards to obtain the capitalists accepted. And they do not desire their money streaming via up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently dissuading the advancement of projects.

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I want to clear up that the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 law that belongs to the code. It simply is a fact that most of the local centers that are merging investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes sense.