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Initially, the program is placed in an extremely strange and non-helpful bureaucratic area for the stimulation of worldwide financial investment in the United States. Second, its scale is all incorrect. We are handing out way too much for too small of an investment. Additionally, increasing financial backing half a million bucks a tranche is, to claim the least, ineffective.


The regional 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 at all, as they perform in Australia, ought to be concerning developing company entities, not easy financial investments. It needs to have to do with creating actual work, not elaborate computations about the indirect creation of tasks, which is currently component of the legislation.


Probably that is one of the reasons it has actually stopped working year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with intermediaries, both public and exclusive. The program has more than its share of detractions, which I will enter later on if anyone is interested.


This is an agency that loves to claim yes to candidates, but as the table in my testimony shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually discussed much. EB5 Regional Center Program. There are high prices of interior rejections in this program and for great reason

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Seventh, in this program visas go to individuals who might not obtain them otherwise and to individuals whose organized investment is actually less, according to the Federal Reserve, than the typical mean web worth of all American families in 2007. Allow me expand on among my monitorings.


My quote based on the investors' permit 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 confirmed-- that is my price quote. USCIS does not provide the kind of data that we can utilize on this.


For every $100 of increased international financial investment that year, the EB program contributed one cent. Under a a lot more shaky statistical base, the initial applications of potential immigrant financiers, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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




Divine offered as Chief Counsel of the USA Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has functioned extensively with the EB-5 program in personal technique. He was chosen, as I understand, vice head of state of the Organization to Purchase USA, the nationwide sector association of regional centers.


Divine, we are happy to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, 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. Thank you for having me.


At many, if all 10,000 ports were used, it would be 1 check here percent of the migration each year to the United States. It is not near that yet, but it is expanding and getting toward that. Specifically as USCIS, the firm that oversees the program, has been making the policies more clear and the procedures a lot more reasonable and clear for individuals who are organizing financial investments and for the investors who are investing, even more individuals have agreed and able to place initiative and money right into the process to discover great tasks and develop them, and afterwards much more capitalists have agreed to invest their cash and take the danger and utilize the cash to create the jobs that is the factor of the program.

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These jobs do not linger forever, and USCIS comprehends that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they are ready to refute applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It becomes part of an appropriations costs that was established in 1992, and given that then that program has been prolonged five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes a great while to develop a task and after that best site to obtain the investors accepted. And they do not want their money streaming top article via until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the development of tasks.

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I would certainly such as to make clear that the Regional Facility 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 belongs to the code. It simply is a truth that the majority of the regional centers that are pooling financial investments have actually established those in places of high joblessness or in country areas where fifty percent- million-dollar investments are allowed, which makes good sense.