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The program is put in an extremely strange and non-helpful bureaucratic area for the excitement of worldwide investment in the United States. Second, its range is all incorrect. We are giving away way too much for too small of a financial investment. Additionally, increasing equity capital fifty percent a million bucks a tranche is, to say the least, inefficient.


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 in all, as they carry out in Australia, need to be concerning producing company entities, not passive financial investments. It must have to do with producing genuine jobs, not elaborate estimations concerning the indirect production of work, which is currently component of the regulations.


Perhaps that is just one of the reasons that it has actually failed every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will certainly enter into later if anyone is interested.


This is a company that likes to say yes to candidates, yet as the table in my testimony shows, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that no one has actually truly spoken around a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and forever factor

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Seventh, in this program visas go to individuals who could not obtain them any type of other method and to people whose planned financial investment is really much less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Let me broaden on among my observations.


My price quote based upon the financiers' permit applications filed 2 years after the first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not provide the sort of information that we could utilize on this.


So for every single $100 of raised foreign investment that year, the EB program contributed one dime. Under a a lot more wobbly analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head see here of the company's migration method team.




Divine acted as Principal Guidance of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and then Performing Replacement Director. He has actually worked thoroughly with the EB-5 program secretive method. He was chosen, as I recognize, vice president of the Organization to Invest in U.S.A., the nationwide industry organization of local.


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


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, however it is expanding and obtaining towards that. Specifically as USCIS, the firm that supervises the program, has been making the policies clearer and the processes much more reasonable and clear for the individuals that are arranging investments and for the financiers that are spending, more individuals have actually wanted and able to place initiative and money right into the process to find excellent projects and create them, and after that much more investors have agreed to spend their cash and take the danger and use the cash to develop the tasks that is the point of the program.

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These projects do not wait around forever, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center check this Program. That does not indicate that they are relaxing their scrutiny, and, in fact, they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It belongs to an appropriations costs that was enacted in why not look here 1992, and considering that then that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a good while to develop a job and after that to obtain the investors authorized. And they do not want their money streaming via till they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of jobs.

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I wish 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 function of the regular EB-5 regulation that becomes part of the code. It simply is a truth that a lot of the regional facilities that are merging financial investments have actually set those in locations of high unemployment or in rural areas where half- million-dollar financial investments are enabled, and that makes feeling.