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First, the program is put in an extremely odd and non-helpful governmental place for the stimulation of global investment in the United States. Second, its scale is all incorrect. We are handing out too much for also little of an investment. Better, raising financial backing half a million bucks a tranche is, to say the least, inefficient.


The local centers, with their half-million systems, basically damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to have to do with creating organization entities, not passive financial investments. It should have to do with creating real jobs, not elaborate computations about the indirect production of tasks, which is now part of the regulations.


Probably that is one of the reasons that it has actually fallen short every 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 loaded with middlemen, both public and personal. The program has more than its share of rumors, which I will certainly enter into later if any person is interested.


This is a firm that likes to claim yes to candidates, however as the table in my testament shows, USCIS officers have far more problem with EB-5 applications than others. I assume that is something that no one has really spoken about much. EB5 Regional Center Program. There are high prices of inner denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals who might not obtain them any type of various other way and to individuals whose planned financial investment is actually much less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Let me increase on among my observations.


My price quote based on the capitalists' permit applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not offer the kind of data that we might make use of on this.


So for every single $100 of increased international investment that year, the EB program added one dime. Under a far more wobbly statistical base, the preliminary applications of potential immigrant capitalists, USCIS is informing journalists that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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




Divine offered as Principal Advise of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Performing Replacement Director. He has functioned thoroughly with the EB-5 program secretive technique. He was elected, as I understand, vice head of state of the Organization to Spend in United States, the national market association of regional.


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 used, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, but it is expanding and obtaining towards that. Particularly as USCIS, the agency that manages the program, has been making the policies clearer and the processes a lot more reasonable and clear for individuals that are arranging financial investments and for the capitalists who are spending, more people have wanted and able to put initiative and cash into the process to discover great jobs and create them, and afterwards more investors have agreed to spend their cash and take the danger and make use of the cash to produce the jobs that is the point of the program.

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These jobs do not linger for life, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, in reality, they are prepared to refute applications that are not more info qualifying. And they do so, as was stated


The regional facility component of the program is not. It becomes part of an appropriations costs that was passed in 1992, and considering that then that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiry in September.


The process takes a great while to develop a task and afterwards to get the capitalists approved. And they do not desire their money flowing with up until they have actually been approved. 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 wish to clear up that the Regional Center Program is not the very 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 is component of the code. It simply is a fact that most of the regional facilities that are merging investments have actually set those in areas of high unemployment or in backwoods where fifty percent- million-dollar investments are permitted, and that makes feeling.