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First, the program is positioned in a very strange and non-helpful governmental place for the excitement of global financial investment in the USA. Second, its scale is all wrong. We are handing out also much for too little of a financial investment. Better, raising venture funding fifty percent a million dollars a tranche is, to state the least, inefficient.


The local facilities, with their half-million systems, basically 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, should be concerning producing company entities, not easy investments. It should have to do with producing real work, not clarify calculations concerning the indirect development of jobs, which is now component of the legislation.


Possibly that is one of the reasons it has fallen short every year to reach the legislative 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 exclusive. The program has greater than its share of detractions, which I will enter later on if any person is interested.


This is a firm that likes to say yes to applicants, but as the table in my testimony reveals, USCIS officers have much more trouble with EB-5 applications than others. I believe that is something that no one has truly chatted about much. EB5 Regional Center Program. There are high prices of interior denials in this program and forever factor

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Seventh, in this program visas most likely to individuals who might not get them any type of other method and to individuals whose planned financial investment is actually 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 observations.


My estimate based on the investors' permit applications filed 2 years after the very first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not offer the kind of data that we could use on this.


So for each $100 of boosted international financial investment that year, the EB program added one dime. Under a a lot more unsteady analytical base, the first applications of potential immigrant capitalists, USCIS is informing reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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




Divine served as Chief Counsel of the United States Citizenship and Migration Providers from July 2004 until November 2006, the description year in which he was Acting Supervisor, and afterwards Acting Replacement Director. He has actually worked 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 U.S.A., the nationwide sector organization of local centers.


DECLARATION 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 many, if all 10,000 ports were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, but it is expanding and getting towards that. Particularly as USCIS, the company that supervises the program, has been making the policies more clear and the processes more reasonable and clear for individuals that are organizing investments and for the capitalists who are spending, even more people have actually wanted and able to put initiative and money right into the process to discover good jobs and develop them, and then extra financiers have wanted to spend their money and take the risk and utilize the cash to develop the work that is the point of the program.

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These projects do not wait about permanently, and USCIS comprehends 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 examination, and, actually, they prepare to reject applications that learn this here now are not certifying. And they do so, as was discussed


The regional facility part of the program is not. It becomes part of an appropriations expense 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 permanent, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a good while to develop a task and after that to obtain the investors authorized. And they this link do not desire their money streaming via until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of tasks.

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I wish 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 routine EB-5 regulation that becomes part of the code. It simply is a fact that most of the local facilities that are merging investments have set those in locations of high unemployment or in country locations where fifty percent- million-dollar financial investments are permitted, which makes good sense.