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The program is put in a really odd and non-helpful administrative area for the excitement of international financial investment in the United States. Second, its scale is all wrong. We are distributing too much for as well little of a financial investment. Better, raising financial backing half a million dollars a tranche is, to say the least, inefficient.

The regional centers, with their half-million plans, essentially undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, must have to do with creating organization entities, not easy investments. It ought to have to do with producing genuine work, not specify calculations about the indirect development of jobs, which is currently part of the legislation.


Maybe that is among the reasons why it has stopped working time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with middlemen, both public and personal. The program has even more than its share of detractions, which I will get involved in later if anyone is interested.


This is a company that loves to claim yes to candidates, but as the table in my testimony shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually truly discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently reason

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Seventh, in this program visas go to individuals that can not get them any kind of other method and to individuals whose planned investment is in fact much less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Allow me broaden on among my monitorings.


My estimate based upon the investors' environment-friendly card applications filed 2 years after the first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not provide the kind of data that we might utilize on this.


So for every $100 of raised foreign financial investment that year, the EB program contributed one cent. Under a a lot more unsteady analytical base, the first applications of would-be immigrant investors, USCIS is telling reporters that the degree of 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 firm's migration technique team.

Divine worked as Principal Advise of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program in personal method. He was chosen, as I recognize, vice president of the Association to Spend in U.S.A., the nationwide sector association of regional centers.


Divine, we are happy to have you right here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, however it is expanding and obtaining toward that. Especially as USCIS, the agency that manages the program, has actually been making the rules more clear and the procedures more logical and clear for individuals that are organizing investments and for the investors that are investing, check here even more individuals have agreed and able to place initiative and cash right into the procedure to locate excellent projects and develop them, and afterwards a lot more capitalists have wanted to invest their money and take the threat and make use of the cash to produce the work that is the point of the program.

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These jobs do not wait around for life, and USCIS understands that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they are ready to deny applications that are not qualifying. And they do so, as was discussed

The local facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes a good while to function up a project and then to get the investors approved. And they do not want their cash flowing with till they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of projects.

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I would certainly like to make clear 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 function of the regular EB-5 law that belongs to the code. It just is a truth that many of the local centers that are merging investments have actually established those in areas of high unemployment or in country areas where half- million-dollar investments are allowed, which makes good sense.