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First, the program is positioned in a really weird and non-helpful governmental area for the excitement of international financial investment in the USA. Second, its scale is all incorrect. We are offering away way too much for too little of an investment. Better, raising endeavor resources fifty percent a million dollars a tranche is, to claim the least, inefficient.


The local centers, with their half-million systems, basically undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to have to do with producing service entities, not easy investments. It must be concerning developing actual tasks, not clarify estimations about the indirect creation of work, which is currently part of the regulation.


Probably that is just one of the reasons it has stopped working year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of intermediaries, both public and personal. The program has greater than its share of scandals, which I will certainly get into later if any person is interested.


This is a firm that enjoys to state yes to applicants, yet as the table in my testimony reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that no one has really discussed much. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently reason

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Seventh, in this program visas go to individuals who might not obtain them differently and to individuals whose planned investment is actually less, according to the Federal Reserve, than the average mean internet well worth of all American households in 2007. Let me expand on one of my monitorings.


My estimate based upon the investors' permit applications submitted 2 years after the first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not offer the sort of data that we can use on this.


So for every $100 of raised international financial investment that year, the EB program contributed one dime. Under a far more shaky statistical base, the first applications of potential 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 listening to me. Chairman Leahy. He is the head of the company's immigration practice team.




Divine worked as Principal Guidance of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Director. He has functioned thoroughly with the EB-5 program in personal practice. He was chosen, as I recognize, vice head of state of the Organization to Spend in USA, the nationwide market association of local.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE web link HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 ports were used, it would be 1 percent of the immigration every year to the United States. It is not near that yet, however it is expanding and getting towards that. Especially as USCIS, the agency that manages the program, has been making the rules clearer and the processes more read more reasonable and clear for the people who are organizing financial investments and for the financiers that are investing, even more people have actually wanted and able to put effort and cash into the process to discover good projects and establish them, and then more financiers have been ready to invest their money and take the risk and make use of the cash to create the jobs that is the point of the program.

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These projects do not wait around permanently, and USCIS understands that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was stated


The regional center component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiry in September.


The process takes a great while to function up a job and after that to obtain the financiers authorized. And they do not desire their cash moving via till they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is already preventing the development of tasks.

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I would like to clear up that the Regional Center Program is not the same as the half-million-dollar point. 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 just is a reality that the majority of the regional facilities that are merging investments have More Help actually set those in areas of high unemployment or in rural locations where fifty percent- million-dollar investments are permitted, which makes sense.