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Initially, the program is placed in a very weird and non-helpful bureaucratic place for the excitement of international investment in the United States. Second, its scale is all incorrect. We are distributing excessive for too small of a financial investment. Better, raising venture capital half a million dollars a tranche is, to say the least, ineffective.


The regional centers, with their half-million plans, basically undercut the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to be about creating company entities, not passive financial investments. It should have to do with developing genuine tasks, not elaborate calculations regarding the indirect creation of work, which is now part of the legislation.


Possibly that is among the reasons it has fallen short every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well loaded with middlemen, both public and personal. The program has more than its share of rumors, which I will obtain right into later on if anybody is interested.


This is a company that likes to claim yes to applicants, yet as the table in my statement shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has actually talked about much. EB5 Regional Center Program. There are high prices of inner denials in this program and completely reason

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Seventh, in this program visas go to people that can not obtain them any various other method and to people whose organized investment is in fact less, according to the Federal Get, than the ordinary mean net worth of all American family members in 2007. Let me increase on one of my observations.


My price quote based upon the financiers' copyright applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not provide the sort of data that we might utilize on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a far more shaky analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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




Divine offered as Chief Advice of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Replacement Director. He has actually worked extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Organization to Invest in United States, the nationwide market organization of regional.


Divine, we are delighted to have you here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) more info Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the migration every year to the USA. It is not near that yet, however it is growing and getting towards that. Especially as USCIS, the agency that manages the program, has been making the regulations clearer and the processes extra reasonable and clear for individuals who are organizing investments and for the capitalists who are investing, more people have actually agreed and able to place effort and money into the process to locate excellent tasks and establish them, and then more financiers have wanted to spend their money and take the danger and make use of the cash to develop the jobs that is the point of the program.

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These jobs do not wait about forever, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional center part of the program is not. It belongs to an appropriations expense that was passed in 1992, and given that then that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiration in September.


The process takes a good while to develop a project and after that to get the financiers accepted. And they do not desire their money moving through until they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is already discouraging the advancement of jobs.

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I would such as to make clear that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 regulation that becomes part of the code. It just is a truth that many of the local facilities that are merging investments have established those in places of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, which makes sense.