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First, the program is put in a really strange and non-helpful bureaucratic location for the stimulation of global financial investment in the USA. Second, its scale is all wrong. We are handing out excessive for too small of a financial investment. Further, raising equity capital half a million dollars a tranche is, to say the least, ineffective.


The local centers, with their half-million schemes, basically undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to have to do with creating business entities, not easy investments. It must be concerning creating genuine jobs, not elaborate calculations about the indirect creation of tasks, which is now component of the legislation.


Possibly that is among the reasons why it has failed time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too filled with intermediaries, both public and exclusive. The program has more than its share of scandals, which I will get involved in later on if anyone is interested.


This is a company that likes to state yes to applicants, however as the table in my testimony reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I think that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals who can not get them differently and to people whose scheduled investment is really much less, according to the Federal Book, than the average mean net worth of all American family members in 2007. Let me expand on one of my monitorings.


My quote based upon the capitalists' environment-friendly card applications submitted 2 years after the first investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not provide the sort of data that we might use on this.


For every $100 of raised international financial investment that year, the EB program added one cent. Under a a lot more shaky analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing reporters 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 paying attention to me. Chairman Leahy. He is the head of the firm's immigration practice team.




Divine acted as Chief Advice of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has actually worked thoroughly with the EB-5 program in personal practice. He was chosen, as I recognize, vice head of state of the Organization to Purchase USA, the nationwide market organization 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 many, if all 10,000 slots were utilized, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, however it is expanding and getting toward that. Particularly as USCIS, the firm that supervises the program, has actually been making the guidelines clearer and the procedures more rational and clear for the people who are arranging investments and for the capitalists who are spending, more individuals have been ready and able to put effort and cash into the procedure to discover excellent projects and establish them, and after that much more capitalists have actually wanted to invest their cash and take the risk and make use of the cash to create the tasks that is the point of the program.

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These tasks do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, in reality, they prepare 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 is part of an appropriations costs that was enacted in 1992, and since then that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiration in September.


The procedure takes an excellent while to function up a job and afterwards to obtain the capitalists authorized. And they do not want their money streaming via till they have actually been approved. And the EB5 Regional Center Program specter of the expiration of this Regional Facility Program in September is already preventing the development of jobs.

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I would love 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 legislation that becomes part of the code. It just is a reality that a lot of the regional centers that are merging investments have established those instead of high joblessness or in rural areas where half- million-dollar financial investments are permitted, which makes feeling.