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Initially, the program is positioned in a really strange and non-helpful bureaucratic place for the excitement of global investment in the United States. Second, its range is all wrong. We are handing out excessive for as well tiny of a financial investment. Additionally, raising equity capital half a million bucks a tranche is, to claim the least, ineffective.


The regional centers, with their half-million systems, basically damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be about developing service entities, not passive investments. It ought to be about developing actual tasks, not specify calculations about the indirect creation of tasks, which is now component of the legislation.


Probably that is one of the reasons that it has fallen short every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with middlemen, both public and private. The program has more than its share of scandals, which I will enter into later on if any person is interested.


This is an agency that enjoys to state yes to applicants, yet as the table in my testament reveals, USCIS police officers have a lot extra difficulty with EB-5 applications than others. I think that is something that no one has actually really talked about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and forever factor

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Seventh, in this program visas most likely to people that might not obtain them differently and to individuals whose planned financial investment is in fact much less, according to the Federal Get, than the average mean total assets of all American families in 2007. Allow me broaden on among my monitorings.


My estimate based on the investors' copyright applications submitted 2 years after the very first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not give the sort of information that we might use on this.


For every $100 of increased international financial investment that year, the EB program added one cent. Under a much a lot more shaky statistical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year was concerning $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 company's immigration practice team.




Divine offered as Principal Advice of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Replacement Director. He has worked extensively with the EB-5 program secretive technique. He was chosen, as I comprehend, vice head of state of the Organization to Spend in U.S.A., the national industry organization of regional.


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


At most, if all 10,000 ports were utilized, it would be 1 percent of the migration every year to the United States. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the agency that looks after the program, has actually been making the regulations more clear and the processes more sensible and clear for the people that are arranging investments and for the capitalists who are investing, even more individuals have actually been willing and able to put effort and money into the procedure to locate good projects and develop them, and then extra financiers have actually wanted to spend their money and take the danger and make use of the money to develop the jobs that is the point of the program.

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These jobs do not linger forever, and USCIS recognizes that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, actually, they prepare to refute applications that are not certifying. And they do so, here as was mentioned


The regional facility part of the program is not. It is component of an appropriations costs that was passed in 1992, and because then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to work up a project and afterwards to get the investors authorized. And they do not want their money streaming via up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of projects.

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I would such as to clear up 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 regular EB-5 law that belongs to the code. It just is a fact that the majority of the regional centers that are pooling investments have set those in locations of high unemployment or in rural areas where half- million-dollar investments are enabled, and that makes good sense.