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The program is placed in a really weird and non-helpful administrative location for the excitement of global investment in the United States. Second, its range is all wrong. We are providing away also much for also tiny of a financial investment. Even more, raising venture resources half a million dollars a tranche is, to say the least, inefficient.


The regional centers, with their half-million schemes, essentially 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 perform in Australia, must have to do with producing service entities, not easy financial investments. It must have to do with creating real tasks, not elaborate calculations about the indirect development of work, which is currently component of the legislation.


Maybe that is just one of the reasons it has failed every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too loaded with intermediaries, both public and personal. The program has more than its share of detractions, which I will certainly enter into later on if any person is interested.


This is a firm that likes to say yes to applicants, yet as the table in my testament reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that no one has really chatted about a lot. 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 go to individuals that could not obtain them differently and to people whose organized investment is in fact much less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Allow me expand on one of my monitorings.


My quote based upon the financiers' permit applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $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 raised foreign financial investment that year, the EB program contributed one cent. Under a far more unsteady statistical base, the preliminary applications of would-be immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year was about $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 group.




Divine acted as Chief Advice of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Supervisor. He has actually worked thoroughly with the EB-5 program in personal practice. He was elected, as I understand, vice head of state of the Website Organization to Buy U.S.A., the nationwide industry association of local centers.


Divine, we are thrilled to have you right here. Please go on, sir. STATEMENT 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 the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the company that looks after the program, has actually been making the rules more clear and the procedures more sensible and clear for individuals who are organizing investments and for the capitalists who useful source are spending, even more people have wanted and able to put effort and cash into the procedure to discover excellent tasks and develop them, and afterwards a lot more capitalists have wanted to invest their cash and take the risk and utilize the cash to produce the jobs that is the factor of the program.

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These projects do not linger for life, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, actually, they prepare to refute applications that are not certifying. And they do you can check here so, as was pointed out


The regional facility part of the program is not. It is component of an appropriations expense that was established 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 date of expiry in September.


The procedure takes an excellent while to develop a task and after that to obtain the investors approved. And they do not want their cash streaming via till they have been approved. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of projects.

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I would love to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 regulation that becomes part of the code. It simply is a fact that the majority of the local centers that are pooling investments have actually set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes sense.